According to Primitive cryptocurrency investment partner, Dovey Wan on Twitter, crypto transactions of any way or form was banned in the payment policy of WeChat. Aside from being a social media company based in China, WeChat is also a provider for payment service.
Last January, WeChat Pay and its competitor, Alipay, requested to remove Huobi, the cryptocurrency exchange, from their payment services.
The tweet of Wan included an image that presented changes in WeChat policy. The change stated that “merchants may not engage in illegal transactions such as virtual currency, the issuance of tokens, selling pornography or online gambling.” Users who are caught in violation of the policy of the company will lose their accounts or account termination. The updates will take effect on May 31.
Wan shared his thoughts about the change in policy, saying that “this may impact local liquidity to quite some extent.” Binance CEO and founder Changpeng Zhao reacted on the policy change as he said that the WeChat was compelled to put restrictions on cryptocurrency transactions. “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,” Zhao added.
Reports and data on WeChat Pay illustrated more than 1 billion total transactions a day and about 1.098 billion number of users at the end of 2018. WeChat is widely used by older people in China ranging from the ages of 50 and 80 users, or 98 percent of Chinese people, according to TechNode.