WeChat Bans Bitcoin, Binance CEO Explains Why It’s Bullish for Crypto

Steven Buchko
Binance CEO Chanpeng Zhao sees WeChat's expanded ban on bitcoin as short-term pain, long-term gain. | Source: (i) Shutterstock (ii) Shutterstock ; Edited by CCN

By CCN: Always the optimist, Binance CEO Changpeng “CZ” Zhao sees a silver lining in the wake of WeChat’s recent ban on crypto trading activities. According to a tweet today by Dovey Wan, founding partner of Primitive Ventures, the Chinese social media company released an updated payment policy which states that it will terminate merchant accounts that participate in cryptocurrency transactions.

In her tweet, Wan argues that most of China’s over-the-counter (OTC) cryptocurrency trades occur on WeChat. So, the ban could have a significant effect on the local market

WeChat’s Fight Against Cryptocurrency

This ban isn’t the first time that WeChat has taken action against cryptocurrency transactions. Last August, WeChat Pay began restricting users from transacting cryptocurrency-related funds on the platform. Both moves are in line with China’s continuous crackdown on cryptocurrency and associated activities.

Just last month, the Chinese government released a report describing plans to put an end to bitcoin mining in the country.

CZ’s Silver Lining

Although the ban will obviously have some negative short-term implications on China‘s crypto market, CZ applauds the move as a positive for the industry. He explains,

“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.”

Read the full story on CCN.com.