WeChat to pose new threat to crypto market

Posted 07 May, 2019

Tecent's WeChat, the leading messenger service in China, has reportedly updated its policies. The statement includes provisions restricting the possibility of over-the-counter cryptocurrency trading.

According to the received messages, the rule will come into force on May 31.

Dovey Wan, a founding partner at Primitive Ventures, writes that since the majority of over-the-counter (OTC) transactions in the country occur through WeChat, the new messenger policy may affect the liquidity of the Chinese market. Account holders are not allowed to conduct an activity that is associated with the release of tokens, raising funds with their help, as well as trading in digital assets, for violation of new rules, account lockout is possible.

Thus, the accounts of well-known over-the-counter sites and users who interact with them will be at risk. Over-the-counter (OTC) traders who use the popular messenger, such as exchanges such as Huobi and OKEx, also fall under the new rules. The extent of the possible persecution is not yet known. But it became known that restrictions can be circumvented by registering new accounts.

Earlier in August, WeChat blocked accounts cryptocurrency media. They were accused of violating the requirements for "public information distribution services in instant messaging tools''.

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