China's crackdown leads WeChat to block cryptocurrency transaction on its platform

The move came into action when WeChat tipped regulators about an ongoing ICO project.

The Chinese clampdown on cryptocurrency has led popular messaging app WeChat to block cryptocurrency transaction via its channel.

According to a report by the CCN, WeChat in a press statement announced that it will prohibit its users from receiving or paying money in the form of virtual currency. WeChat, as per the statement will not support digital currency in any form. Tencent has reportedly created a model which monitors and reports about any virtual currency transaction to the authorities.

Chinas crackdown leads WeChat to block cryptocurrency transaction on its platform

WeChat. Reuters.

The move came into action when WeChat tipped the Chinese cryptocurrency regulators about the promotions of the ongoing Initial Coin Offering project on its platform. In response to this, the Chinese Fintech Risk Rectification Office has these permanently banned these accounts.

Apart from Tencent, AliPay is already taking steps to block accounts who are using the platform to transact in virtual currency, especially Bitcoin.

China has already banned transactions happening via the initial coin offering however, it is still onboard with the development of the blockchain technology. It is trying to curb any virtual currency exchange happening in the local market.

It has been a year since China banned virtual currency in China and deemed it illegal. In 2016-17, cryptocurrency was a booming market which led to an increase in the transaction of digital currencies such as Bitcoin, Ethereum, etc.

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