China is aiming to block everything concerning cryptocurrency and Chinese mobile payments platforms WeChat Pay and Alipay are already scrambling to keep up with regulators.
WeChat and Alipay are monitoring their platforms for any transactions related to cryptocurrencies and initial coin offerings Alibaba, the company backing Alipay released a statement saying
“Alipay has always adhered to the principle of not providing services to virtual currency transactions,” an Ant Financial spokesperson said in a statement. “We will continue to closely monitor over-the-counter trading activities on a daily basis. Once we find any suspicious crypto-related transactions, we will take appropriate measures immediately, including but not limited to: suspension of fund transfer functionality of any Alipay accounts used by companies for crypto-related transactions.”
A Statement released by Tencent who backs WeChat says they are taking the following measures for violations:
1. Restrict the collection function of the problem platform receiving account, and prohibit it from using WeChat payment for virtual currency transaction collection;
2. Limit the amount of payment for individual seller accounts, only to meet the daily social business use, and limit the collection of virtual currency related transactions. All the use of merchant numbers for the cleaning of virtual currency transactions has been completed;
3. Real-time monitoring of daily transactions, risk assessment of hit transactions based on monitoring results, or direct interception measures.
The country has already banned domestic exchanges, initial coin offerings, and is now seeking to block foreign exchanges using the country’s Great Firewall, according to information made available by state media
Part of the information reads;
“…in order to consolidate the results of special rectification work and prevent financial risks, the relevant departments will further adopt targeted clean-up measures to maintain financial order and social stability.
“First, the 124 websites are located outside the country, but the virtual currency trading platform website that provides transaction services for domestic residents has taken necessary control measures. The next step will be to strengthen monitoring and block in real time.
“The second is to strengthen the disposal of new ICO and virtual currency transaction related websites and public numbers. The domestic ICO and virtual currency trading site websites, public numbers, and the public numbers, self-media and websites that provide support and services for the above activities are promptly closed and sealed up. On the evening of the 21st, the public account of Golden Finance and Coin World was ordered to block all content due to suspected release of ICO and virtual currency trading hype information, and the account was permanently closed.
“The third is to continue to strengthen the clean-up and rectification efforts from the payment and settlement side.
For a country that strictly monitors its citizens, cryptocurrencies will definitely have a hard time in China.