Chinese Messaging App WeChat Stops Merchants From Crypto Activities

wechat may10

WeChat, a major messaging app and payments service provider in China, revised its payment policy to stop merchants from engaging in token issuance and crypto trading activities. If violated, Tenpay, the payment platform of WeChat, said it will have the right to terminate their payment settlement services.

Under the new policy, the social media and mobile payment app, owned by Chinese technology giant Tencent Holdings Ltd., said the merchants using its service on WeChat Pay should not do crypto trading activities directly or in disguise.

The revised agreement will be applicable from May 31.

In the policy change for the control and regulation of illegal transactions, the company noted that the merchants may not engage in activities like Internet gambling, pornographic platforms, Internet sales lottery platforms, illegal foreign exchange, as well as token issuing financing and virtual currency trading platforms, among other things.

The latest policy change is expected to have an impact on over-the-counter or OTC cryptocurrency trading in China. As per reports, WeChat coordinates the majority of OTC crypto trading in the country.

WeChat's parent Tencent, as well as Chinese internet giants Baidu and Alibaba, last year had blocked cryptocurrency-related activities on their platforms after regulators in the country intensified crackdown on cryptocurrencies.

It was in September last year that China started its crackdown on digital currencies, banning domestic exchanges and initial coin offerings or ICOs.

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