Tencent And Ant Financials Ban Cryptocurrency Transactions in Payment Apps

Ant Financials and Tencent have ramped up efforts as they seek to crack down on cryptocurrency related activities and transactions in their respective mobile payment apps.  The push comes on reports regulators in the country are set to start scrutinizing and restricting digital currencies payments in mobile apps.

Ant Financials, which is an affiliate of Alibaba Group and Alipay backer has started monitoring accounts of individuals believed to be still engaged in cryptocurrency activities. The firm is to block such transactions or if a need arises, could suspend accounts involved in such activities.

A joint inspection team is up and running tasked with the responsibility of scrutinizing over the counter crypto transactions as part of the latest push to put to an end such operations. Ant Financials has also set up a functional system for inspecting websites that facilitate digital currency transactions in the mobile payment app.

“Alipay has always adhered to the principle of not providing services to virtual currency transactions. We will continue to monitor over-the-counter trading activities on a daily basis closely. Once we find any suspicious crypto-related transactions, we will take appropriate measures immediately,” said Ant Financial Spokesperson.

Alipay is also to conduct a public sensitization campaign with the aim of educating people about regulations in matters cryptocurrency. The campaign will also seek to educate people about the potential risks at hand in dealing with in unregulated cryptocurrency related products.

The education campaign comes on growing concerns over the emergence of a Ponzi scheme that continue to defraud unsuspecting investors. In April Chinese police uncovered, a crypto-powered Ponzi scheme that had defrauded over 1000 thousand people as much as $13 million.

Regulatory watchdogs led by the Banking Regulatory Commission have since embarked on a sensitization drive as they seek to advise people to be wary of fraudsters in the emerging cryptocurrency industry.

Even on the Chinese government passing a ban on cryptocurrencies, people have continued to trade cryptocurrencies via peer-to-peer trading platforms. However, with an increase in government scrutiny in the recent past, backers of such platforms have been left with no choice but to increase controls in a bid to put to an end such operations.

Tencent just like Ant Financial has also banned all cryptocurrency related transactions in its mobile payment app WeChat Pay. The tech giant is to undertake real-time monitoring of all activities taking place in the app as part of the latest crackdown.