According to Chinese media, WeChat-the China-based immediate messaging hulk has banned Bitcoin BTC and crypto dealings as a result of upgradation of the payment strategy.
The current move will negatively affect the over-the-counter (OTC) and person-to-person dealers depending on these platforms for their businesses.
The ban further exposes that China is not surrendering on its struggles to ban cybernetic currencies in the state.
WeChat recently upgraded its payment policy stating that the BTC and crypto dealings were forbidden on the application. The declaration also specified that the accounts involving in BTC and crypto dealings will suffer closure.
The changed policy will cast a blow to dealers relying on OTC and P2P platforms to run their trades. The co-founder of Primitive Ventures, Dovey Wan informed about the news via tweet and indicated that the ban will affect liquidity in China.
Urgh, Wechat just updated its payment policy .. merchant can’t serve any token issuance/fund raising or crypto trading activities, otherwise account will be terminated
Given most OTC transactions are happening in wechat, this may impact local liquidity to quite some extent pic.twitter.com/TdNIO6cggS
— Dovey Wan 🗝 🦖 (@DoveyWan) May 7, 2019
Last year, the BTC Manager testified that WeChat had folded the accounts of crypto platforms. The delisted firms include Firecon Information, Houbi News, and Cannon Rating.WeChat specified that the blocked accounts were against Chinese laws.
Changpeng Zhao, the CEO of Binance also responded to the statement. He said that the news was not entirely negative, as it might inspire huge crypto acceptance.
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!
— CZ Binance (@cz_binance) May 7, 2019
Past year, the Chinese watchdogs jammed the social media accounts of virtual currency exchanges.
Chinese stance against BTC and crypto has an extended history i.e. blanket ban on ICOs. This negative attitude has seen the evacuation of home-based crypto exchanges to welcoming zones.
Last month, a publication exposed that China was preparing to prohibit the mining of Bitcoin.
The report stated that the cybernetic currency mining and other industrial procedures were damaging to the environment and disturbed state rules.