WeChat bans cryptocurrency trading and fund raising: 'Long term gain'

07 May, 2019
by Jelmer van der Dussen
WeChat bans cryptocurrency trading and fund raising: 'Long term gain'

WeChat has updated its payment policy, banning cryptocurrency trading and any other payment/trading activities related to cryptocurrency. The largest messaging, social media and payments app, with over 1 billion daily users, will remove accounts that violate these rules starting May 31. 

Dovey Wan, a prominant cryptocurrency figure on Twitter living in China, shared a screenshot of the updated policy, in which is stated that merchants are not allowed to engage in virtual currency transactions or token fund raising. Wan says that 'given most OTC transactions are happening in wechat, this may impact local liquidity to quite some extent.'

With cryptocurrency exchanges banned in China, users took to WeChat to buy and sell cryptocurrencies over the counter.

Binance CEO Changpeng Zhao commented on the matter, seeing a chance for cryptocurrency in this new WeChat policy. 'This is a classic example of short term pain, long term gain. It is inconvenient for people short term, and they take a hit. But long term, it is precisely this type of restriction of freedom that will push people to use crypto. Not a bad thing.'

CZ continued: 'Honestly, it would be hard to beat WeChat pay if they are relatively open. (The UX is good). But more and more restrictions are forced upon them (probably not their own choice). Go crypto!'

In another tweet, Dovey Wan, Founding Partner at Primitive, that peer-to-peer transactions are hard to maintain this way as well. 

It's not the first time WeChat is cracking down on crypto. Last year, it even suspended accounts 'spreading the crypto hype'.

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