In what could be termed as another body blow for cryptocurrency in China, the country’s largest social application, WeChat has announced that it is going to ban all activities related to crypto assets and their fundraising on its platform. The move is aligned with the larger objective of the Chinese government, which has enforced a ban on all digital assets in the country. Just so you know, the initial coin offerings (ICOs) and local cryptocurrency exchanges have already been barred to conduct operations in China. Behind this intensive crackdown, it is widely believed that Chinese authorities have pressurized WeChat to come up with this new policy of banning crypto assets trading on which platform.
The announcement in this regard was made on May 7 when the WeChat updated its business policies along with terms and conditions. According to the new policy, the social media platform has decided to ban crypto trading on its platform with effect from May 31, 2019. It is still unclear what prompted the Tencent (owner of WeChat) to come up with such a policy, but speculations are rife that officials of the Chinese government have had their role in pushing this decision. Chinese authorities in the past too had ordered many businesses including Alibaba and Baidu to ban activities related to cryptocurrencies on their platform.
WeChat is the most popular social media app in China, and its popularity can be gauged from the fact that this app has more than 1 billion active users. What makes this app unique is the fact that not only it is used for the communicating messages (just like WhatsApp), but it also has a host of other features which facilitates users to do the shopping, make payments, read news and many more such things. In fact, it won’t be an exaggeration to say that it is a multipurpose application combining functionalities of many apps in one.
Regulations and Censorship
Despite being very influential in its outreach and impact on the users, WeChat is heavily regulated by the Chinese authorities. According to a report on Time Magazine, the Chinese government has censored the ongoing tariff trouble between the US and China on WeChat. Along with this topic, many others scandals within the Chinese government including the vaccine goof, the movement against sexual harassment #MeToo were censored by the Chinese officials on WeChat as authorities asked the social media platform to delete all the political sensitive comments.
Crypto Ban and China
In the overall context of the crypto ban in China, this new development indicates that the government intends to continue with a ban on digital currencies is very much intact. There is no immediate relief for the cryptocurrencies insight at least for now, which means the crypto adoption in China continues to remain a distant dream. This also indicates the authoritative nature of the Chinese government is intensifying with each passing day as it is unwilling to adopt decentralized currency in any of its forms. This new move from WeChat will further dampen spirits of people to gravitate towards digital currencies.