WeChat shuts down crypto trading. The Chinese dominant messaging application, WeChat, and which is powered by Tencent, has reviewed its payment policy hence stopping merchants from conducting crypto related financial activities. WeChat application is mostly used for over the counter transactions.
On 30th April, WeChat adjusted its payment service protocol that prohibited the merchants from using the service to conduct any activity indirectly or directly operating virtual currency trading or offering services.
Over one billion unspecified currency volume on daily basis is reportedly registered by WeChat Pay. While the total subscribers were 1.098 billion by the end of 2018. WeChat is also popular among the elderly between the 50 and 80 years age group.
OTC crypto traders seems to be targeted by another action which is against the crypto traders using the messaging platform. WeChat is used by a large number of traders to transfer local currency to OKEx and Huobi which are crypto exchanges. Huobi and OKEX exchange platforms provide OTC trading to swap Chinese Yuan to crypto and vice versa.
It’s the second time Ant Financial (an affiliate company of Alibaba) and WeChat are placing crypto ban on crypto traders messaging application. The initial ban was initiated in august last year.
As WeChat shuts down crypto trading, do you think this a blow to the already weak Chinese crypto market?
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