WeChat Shuts Down Crypto Trading as China Continues with Crypto Ban

  • Yuri Molchan
    📰 News

    The Chinese messaging service powered by Tencent has changed its policy to prohibit merchants from conducting any financial activities related to crypto


WeChat Shuts Down Crypto Trading as China Continues with Crypto Ban
Contents

On April 30, WeChat made adjustments to its payment terms protocol. From now on, merchants that have accounts on the app are forbidden from conducting any activities that involve digital coins or ICOs. Details were shared by CoinDesk.

No crypto trading on WeChat

The situation seems to be the continuation of the Chinese ban on ICOs and digital currencies which began in 2017.

The new policy on WeChat becomes valid on May 31. All merchants will be banned from conducting any crypto-related payments. Those who do will be forbidden from using any payment services on the platform at all.

A blow against OTC crypto traders

Another action against the crypto industry initiated by WeChat seems to be targeted at OTC crypto traders.

Since WeChat is the most popular messaging app in China, a great number of these traders use WeChat for transferring the local fiat currency to Huobi and OKEx exchanges. These two platforms offer provide venues for OTC trading to swap Chinese yuan for crypto and the other way around.

This is the second phase of the crypto ban placed by WeChat and Ant Financial (an affiliate company of Alibaba) on crypto traders on the messaging app. The initial ban was initiated in late summer last year.

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China plans to shut down local Bitcoin mining

Not long ago, U.Today reported that the major state agency in China, the National Development Reform Commission (NDRC), has suggested the total prohibition of crypto mining in the country.

The agency claims that mining takes too much electricity, therefore, it is an industry harmful to the environment.

Since a great part of overall Bitcoin mining pools is located in China, this could present a harsh blow against the crypto market, BTC in particular, bringing down the network’s hash rate.

Still, many observers stay optimistic, believing that other miners will pop up fast, eager to take the new vacant places in this still profitable business.

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Litecoin (LTC) User Pays 200 LTC Fee to Transfer Slightly Under 9 LTC

  • Yuri Molchan
    📰 News

    A LTC user has recently✔️ ⏳ sent a small Litecoin amount and had to pay✔️ 💸 a 200 LTC fee for verification, even though s/he was only moving📈 8.88 LTC


Litecoin (LTC) User Pays 200 LTC Fee to Transfer Slightly Under 9 LTC
Contents

Recently, a Litecoin user has made a transaction to send 8.88 LTC (slightly under $1,000). The network fee he had to pay for it was huge – a bit more than 200 LTC, though. That is $20,500.

Strange spike in LTC transaction fees

The news was reported by Litecoin.com, the Chinese mining pool LTC.Top included the expensive transaction into the block 1636831 and verified it, taking the abnormally big fee.

Instead of paying a regular fee of about $0.05 on the LTC network, the user had to pay $0.70 – a fee which miners collected in late 2017 when LTC was at the peak of its peak price at $400.

After that LTC and other altcoins lost 80 percent of their value along with Bitcoin.

The fee per kB totalled 83.23080000 LTC ($7,297.68)

The fee per kWU totalled 20.80770000 LTC ($1,824.42)

The fee per kVB equalled 83.23080000 LTC ($7,297.68)

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The abnormal fee should be returned

The transaction turned out to be a consolidation of funds. Since the first appearance of this address on the network, it has conducted slightly under 2,600 transactions with LTC.

Since funds are often added and removed from this address, Litecoin.com believes that it is a corporate wallet. Litecoin.com reports that most likely the accident was a pure error either based on human behaviour or on software error.

The website urges readers to reach out to the LTC.Top mining pool and get them to return the fee to the transaction maker.

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