WeChat Blocks Bitcoin Transactions; Binance CEO Takes It Positively
The leading messaging app of China, WeChat, has recently modified its payment policy. The new payment policy says that users who engage in cryptocurrency-based trading will have their accounts cancelled. The emerging technology, be it blockchain or cryptocurrencies, where people are thinking of adopting it, organizations such as WeChat and others are preventing people from making investments in cryptocurrencies by imposing regulations. This proves, not every country has a positive approach towards the digital currency.
WeChat is the largest messaging app and the payment service provider with a monthly user base of around 1 billion people. The new update policy is going to significantly affect merchants in carrying out transactions related to digital currency. The new rule will come into effect from May 31st, 2019, onwards.
Primitive Ventures, founding partner Dovey Wan, said that the maximum amount of over-the-counter (OTC) transactions in China is carried out through WeChat. The new law is going to have some impact on the local market. She said this via a Tweet on 7th May 2019. The new rule states that the merchant should not be involved in any illegal digital currency activity, such as the issue of tokens, online gambling, or selling pornography.
Meantime, Binance CEO CZ said, “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.”
Such of restriction is going to affect a few cryptocurrency exchanges and even harm the adoption of digital currencies. CZ remains completely optimistic over the WeChat ban. CZ believes that the cryptocurrency ban might not be the decision of the company; they might have been forced to do so. The user experience (UX) of WeChat Pay offered to users is really great, and it could be hard to defeat.
China Opposes Cryptocurrency
This is not the first time that the Chinese government has imposed a ban on Bitcoin. In April, a source revealed that the State Planner of China is planning to ban Bitcoin mining. WeChat has also taken significant steps to fight against digital currencies. Earlier, WeChat Pay had banned users from carrying out cryptocurrency transactions on the payment platform.
Binance CEO Changpeng Zhao: Good for Long-Term Gain
The WeChat new update policy is certainly going to have a negative impact for a short period in the Chinese crypto market. However, Zhao welcomes the moves and says it’s positive for the crypto industry. WeChat’s move will be difficult for crypto users as of now, although he believes that more people will start adopting cryptocurrency in the future due to bans and restrictions. He says that having such a restriction is “Not a bad thing.” WeChat, the payment app, is not only popular among young people, but it has also been used by older people. WeChat managed to reach 1.098 billion users at the end of 2018, and around 98.5 percent of people in the age group of 50 – 80 use the WeChat app.
