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WeChat update: Merchants to cease crypto-sales via messaging app; OTC trading could take a hit

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WeChat update: Merchants to cease crypto-sales via messaging app; OTC trading could take a hit
Source: Pixabay

WeChat, China’s largest messaging platform, has updated its payments policy in what could be a detrimental effect to token services on the platform. As a result, merchants that offer token and fundraising services on the platform will be taking a severe hit.

Dovey Wan, a funding partner at Primitive Ventures and notable cryptocurrency influencer, confirmed the news via a tweet. She stated that the “local liquidity” will be adversely impacted, given the severity of OTC transactions that take place via the messaging application.

Wan’s tweet read,

“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
Given most OTC transactions are happening in wechat, this may impact local liquidity to quite some extent”

The Chinese messaging platform will terminate the accounts of those who use their services for trading cryptocurrencies. According to WeChat’s payment policy change, “merchants may not engage in illegal transactions such as virtual currency.”

Source: Twitter

WeChat’s stern stance is not against the virtual currency sector alone, with transactions related to online gambling and pornography also leading to account termination. This rule will however, only be enforced from May 31.

The exodus of cryptocurrency transactions from China’s messaging mainstay is part of a long-term plan to weed out decentralized currency as a whole from the country. Back in 2017, the government placed an exchange and ICO ban and more recently, moved to outrightly ban the country’s globally dominant mining industry.

China has in the past exercised its authority over WeChat to irk the country’s cryptocurrency community. In August 2018, the government cracked down on several public WeChat accounts, citing violation of the messaging platform’s terms.

Several analysts have pointed out that the Bitcoin [BTC] price collapse from $7,300 to under $6,300 in early September 2018 was directly due to the WeChat de-platforming, despite the Goldman Sachs crypto-trading desk rumors being put to bed at the same time.



Changpeng Zhao, CEO of Binance responded to Wan’s tweet, stating,

“This is a classic example of short term pain, long term gain. 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.”

Given crypto’s ‘under the hood’ dominance in China, this OTC trading crackdown could be a larger effort on the part of the messaging giant to force users to migrate to WeChat pay. However, given the degree of control exercised by the Chinese government, “restrictions” will eventually be placed on WeChat as well, stated CZ. He concluded,

“Honestly, it would be hard to beat WeChat pay if they are relatively open. (The UX is good). But more and more restrictions are forced upon them (probably not their own choice). Go #crypto!”





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Binance Coin [BNB] registers ATH as it surges by over 16,000% since inception

Namrata Shukla

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Binance coin [BNB] registers ATH as it surges by over 16,000% since inception
Source: Pixabay

The cryptocurrency market continued to register massive growth, as the prices of most major cryptocurrencies soared. However, the late entrant to the list, Binance Coin [BNB] is posing to be tough competition for other coins in terms of performance. BNB which entered the crypto market in July 2017, breached its all-time high and was trading at $28.79, at press time.

Source: Trading view

Source: Trading view

Binance Coin started out in July 2017 with a value of $0.1927 and marked its all-time high on May 18 at $31.91, according to the Trading View chart of the coin on Binance. BNB noted the growth of a massive 16,458.31% since 2017. However, until the beginning of 2019, BNB was valued at $6.59, after which the coin noted a surge by 384.15% and peaked at $31.



Source: CoinMarketCap

Source: CoinMarketCap

In the month of May, BNB noted a 28.16% growth, and the coin was valued at $28.66, with a market cap of $4.04 billion. The 24-hour trade volume of the coin was reported to be $551 million as it spiked by over 10% in a day. In the past seven days, the coin grew by 35.97%, but slipped by a minimal 0.25% in an hour.

BNB was highly traded on its native exchange, Binance via the BNB/BTC and BNB/USDT pairs. The BNB/BTC trading volume noted on Binance was $140 million, while the volume reported on the BNB/USDT pair was $132 million. The third place was taken by BKEX via the BNB/USDT pair as it registered a trading volume of $72 million.





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