WeChat is an app in China that is a multi-purposing in messaging, social media and mobile payment app developed by Tencent.
Essentially, the app is the Chinese equivalent of WhatsApp and it has recently updated its terms of service to ban merchants from fundraising by using tokens or cryptocurrencies Last month, WeChat has subtly revised its policy which will take place on 31st May. merchants violating the update will have their accounts terminated, which you can see below.
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— Dovey Wan 🗝 🦖 (@DoveyWan) May 7, 2019
Given most OTC transactions are happening in wechat, this may impact local liquidity to quite some extent pic.twitter.com/TdNIO6cggS
Of course, if you can’t read traditional Chinese, then a roughly translated version says that it states that WeChat users must not “engage in token issuing financing and virtual currency trading platforms directly or in disguise.” The update will also forbid users from investing in precious metals through trading platforms as well as illegal securities and futures.
The apps parent company, Tencent has been hit by China’s stringent cryptocurrency laws over the past year. In fact, in 2018 we actually saw WeChat ban at least eight cryptocurrency media outlets for violating Chinese law by publishing virtual currency trading information and boosting up some initial coin offerings. Tencent banned crypto trading on WeChat too and it started to monitor accounts to block any cryptocurrency related activity in real-time.
WeChat is the largest social network in China, giving over 1 billion users per month, access to messaging, social media and mobile payments. This also includes access to local and international news, as well as access to the important crypto headlines that you’re always on the lookout for! Since December 2018, CryptoDaily can now proudly announce, our integration with the biggest social network in China, as we are now live on WeChat!