Wechat and Alipay are set to ban cryptocurrency transaction on their payment platforms. The development is a reaction to the clampdown of regulatory agencies on cryptocurrency activities in China.
The ban on Cryptocurrency in China
The Chinese government placed a ban on cryptocurrency offerings and its use in the country over a year ago. However, this has not stopped increasing interest in blockchain in the country despite the ban on cryptocurrency exchange in the state.
There has been a continual promotion of cryptocurrency activities in the country by crypto enthusiasts.
On August 17th, a new development was made to further curb cryptocurrency activities in the country, as a press release was made by a district government of Beijing to ban all forms of events and promotion of cryptocurrency in shopping malls, hotels, restaurants, and office buildings all over the country.
The reason cited for the ban by the district government is an attempt to guide the financial safety of the citizens. So also is to increase the strong position of the Yuan as the national currency if China, against the extensive use of cryptocurrencies.
Notedly, the condition of the cryptocurrency market in China has made many of its citizens prone to cryptocurrency scams. Due to the lack of proper government regulations, interested investors in cryptocurrency are falling for the scheme of scammers. Recently, a study revealed that the top target countries of cryptocurrency scammers are USA, Russia, and China.
The Effect Of the Latest Ban on Cryptocurrency Promotion in China
The impact of the new ban on cryptocurrency is already being felt, as two giant Chinese payment platforms are set to ban cryptocurrency transaction on their respective platforms. WeChat and AliPay are set to result in this measure, to get aligned with the new government injunction on cryptocurrencies.
The parent company of WeChat, Tencent, has made a release on a measure to regulate platforms connected to ICOs and cryptocurrencies. The firm would be introducing daily real-time monitoring of daily transactions and also risk assessment of any suspicious transaction. As part of these measures, it was explicitly stated that cryptocurrency transaction would be banned from its WeChat payment platform.
Similarly, the Alibaba group payment platform is also planning to implement a temporary or permanent ban of cryptocurrency transactions on the Alipay platform.
The recent development would bring a further clamp down on cryptocurrency activities in the country, despite the growing interest of the nation in blockchain technology to develop its future city.