Binance’s P2P exchange platform in China was met with much controversy when announced. It now seems that one of its payment processors, Weibo, has shut down the service completely.
Last month, Binance announced an over-the-counter P2P platform for Chinese residents. It was a means by which its citizens could purchase cryptocurrencies through payment processors like Weibo and AliPay.
However, as BeInCrypto then reported, the companies spoke out against the announcement. AliPay denied it outright, tweeting at Binance CEO Changpeng Zhao that such assertions are false. In short, the Chinese payment giant flat-out denied that cryptocurrencies could be bought and sold using its channels.
Weibo Bans Binance Account from Platform
It now seems that Weibo has decided to take this a step further, with an official binding rebuttal to Binance. It seems that the exchange’s Weibo account for such transactions has been canceled.
In an article published in the China Times, a complicated story is told of how Weibo effectively shut down Binance’s operations on its platform. The text on Binance’s account on Weibo now reads: “The account has been blocked due to violations of laws and regulations and the relevant provisions of the Weibo Community Convention.”
According to the China Times, the ban on Weibo could result in more serious penalties for Binance by the Chinese government. As of now, the situation with Alipay is still uncertain but it seems likely that Binance’s offerings on that payment channel will also cease.
A Major Blow to Binance’s China Aspirations
The decision is a major blow to an exchange which prided itself on the announcement just a month ago. Instead, Binance’s CEO found himself in an awkward position by being called out on Twitter by Alipay itself. The latest decision by Weibo is yet another stumble and demonstrates the difficulties that the world’s largest exchange is having in regards to establishing a foothold in China.
We can safely say now that Binance’s P2P aspirations in China will have to be put on hold for the time being.
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