Daily Management Review

Cryptocurrency Transactions Prevented On WeChat Pay And AliPay In China


Cryptocurrency Transactions Prevented On WeChat Pay And AliPay In China
The large mobile payments companies in China have barred the use of and transactions related to cryptocurrencies and this move would make is harder for the proponents of cryptocurrencies to trade in them I the country.
Close monitoring to identify any transaction with crypto currencies on their platforms would be done by WeChat Pay and Ant Financial’s Alipay. WeChat announced very recently that it would not allow users to send funds related to such digital assets on its social media platform.
This is a notable move because the technology has been rapidly adopted by Chinese citizens. In the first 10 months of 2017 alone, mobile payment technology was utilized for transactions which had a total value of more than $12 trillion.
On the other hand, a statement released by Ant Financial, which is supported by Chinese tech giant Alibaba, claimed that the company has been preventing accounting with cryptocurrency transactions on its payments platforms for quite some time now. It is estimated that there are about 520 million users in Alipay while there are about 1 billion monthly active users FOR WeChat.
“Alipay has always adhered to the principle of not providing services to virtual currency transactions,” an Ant Financial spokesperson said in a statement. “We will continue to closely monitor over-the-counter trading activities on a daily basis. Once we find any suspicious crypto-related transactions, we will take appropriate measures immediately, including but not limited to: suspension of fund transfer functionality of any Alipay accounts used by companies for crypto-related transactions.”
These moves coincide with measures by the Chinese government to come down heavily on cryptocurrencies om the current year.  All domestic exchanges and any form of initial coin offerings in China related to crypto currencies has already been banned by Chinese authorities and according to the Chinese state media, the authorities in the country are now looking to ban foreign exchanges using the country’s Great Firewall.
But over-the-counter methods could still be one of the ways that investors could theoretically purchase crypto currencies despite the above-mentioned restrictions on virtual currencies. Though officials seem wary of that trading loophole.
Warnings against any fundraising scams that claim to be developing a blockchain project was issued for the general Chinese investors earlier last week by the country’s authorities including the China Banking and Insurance Regulatory Commission. Officials also shuttered a “large” number of WeChat groups that discussed newer cryptocurrencies.