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WeChat bans Crypto Transactions


Chinese social media giant and payment service provider WeChat has recently banned crypto transactions as a part of its privacy policy. The news was announced in a tweet by Dovey Wan, founding partner of crypto investment firm Primitive. He further said that since OTC transactions take place in WeChat it can have an impact on local liquidity. 

The rules will come into force on May 31. Per the ruling merchants have been banned from engaging in illegal transactions, which include virtual currencies, issuance of tokens or online gambling. 

Changpeng Zhao defined the developments as “A classic example of short term pain, long term gain.” 

He explained: “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.”

He also mentioned that the user- experience offered by WeChat is unparallel keeping aside the restrictions. WeChat Pay has a daily transaction volume of over 1 billion. Its user base reached 1.098 billion by the end of last year. 

Last month, CoinMartketFeed reported, major Chinese city Guangzhou has issued a business license using blockchain and artificial intelligence technology. The license further includes a WeChat integration. The license has been reportedly issued at the administrative center of Huangpu District. Further, this is the first business license issued using blockchain and AI in China. Huangpu District piloted its commercial service blockchain platform and it has reduced the bid submission time and has also helped avoid double submissions. 

The license purportedly allows startups to file an application, and simultaneously open a bank account. In addition, to submitting a tax invoice application using a WeChat mini-program. 

In early March, China issued its first blockchain-based electronic invoice for a subway ride issued in the Shenzhen Metro through a project developed by the Shenzhen Municipal Taxation Bureau. 

In late December 2018, Guangzhou, along with Beijing and Shanghai, established their prominence as the biggest concentrated areas of relevant blockchain legislation in China. Also, Guangzhou was selected as the headquarters for a new local blockchain alliance. The alliance involved 54 companies focusing on blockchain’s use in finance and trading. 

Recently, executive chairman of the Blockchain Research Institute Donald Tapscott made a prediction that official Chinese currency, the renminbi (RMB), will become a cryptocurrency.

Also, recently Switzerland-based food giant Nestlé, French supermarket chain Carrefour has partnered with IBM for tracking the supply chain of Mousline. Once the pilot is rolled out, shoppers will be able to know where exactly the potatoes came from by scanning a QR code in their smartphones. In addition, to their journey to the specific Carrefour store.