WeChat is the largest and also a major payment services provider. The company has today that announced that it will no longer tolerate crypto currency transactions in its payment policies. The business guru has placed a ban on them with immediate effect.
A close outlook at the ban
The first official to come up with the news was the founding partner of crypto investment firm Primitive Dovey Wan through a tweet. He tweeted this on May 7. He attached a screenshot of the policy changes which indicated the company’s seriousness in locking the accounts of users that would continue with the exercise.
According to Wan, it was unsafe allowing such a huge deal of the over-the-counter transactions to continue in WeChat. He complained that it would spark issues in the local liquidity was it left to continue.
The company has been performing well, growing in popularity among the various messaging and payments service provider in the country. It has also been featuring several game integrations.
The updated rules and a focus into the future
One of the officials working with the company has outlined that the updated rules will swing into effect on May 31.He adds that merchants will be barred from conducting illegal transactions such as virtual transactions.
The company prohibits the sale of pornographic materials, the issuance of tokens and online gambling on its trusted platform. CEO of major cryptocurrency exchange Binance, Changpeng Zhao, has spoken in relation to the latest developments. According to the leader, the restrictions may have been imposed on the company. The leader says the developments are classical examples of the “short term pain, long term gain.”
He thinks that people might find it inconvenient for the short term, but in the long run it may mean freedom. He thinks that it is most probably not a bad thing.
Zhao admits that WeChat payment services were of a higher standard and that might prove difficult to beat. WeChat Pay app is quite popular among the elderly. In fact about h 98.5% of Chinese people aged between 50 and 80 use WeChat.