<p>Chinese social-media and payments app WeChat has updated its payment policy, stating that users who engage in crypto trading will have their accounts terminated.</p> <p>The policy revision states that "merchants may not engage in illegal transactions such as virtual currency [trading]" or token issuing, alongside other banned payment outlets like pornography or online gambling. The new rule comes into effect at the end of the month, on May 31.</p> <p>China has particularly stringent rules when it comes to cryptocurrency, <a href="https://www.scmp.com/business/banking-finance/article/2132009/china-stamp-out-cryptocurrency-trading-completely-ban">with exchanges banned from offering services in the country</a>, meaning WeChat may have succumbed to government pressure. Binance CEO Changpeng "CZ" Zhao said that it was "probably not [WeChat's] own choice" <a href="https://twitter.com/cz_binance/status/1125699545654906880">in a tweet,</a> suggesting that the new restrictions could create an opening for crypto companies to eat WeChat's lunch on the payments side of its business. </p> <p>WeChat is a dominant channel for over-the-counter (OTC) cryptocurrency transactions in China, <a href="https://twitter.com/DoveyWan/status/1125667936335581190">according to founding partner of Primitive Ventures Dovey Wan</a>, meaning the policy-change could strain the liquidity pool in the region.</p>