What’s Happening?

In a plot twist that could give any soap opera a run for its money, Alipay and WeChat Pay have decided to rain on Huobi’s parade. Local media outlet Sina reported on January 25 that these major Chinese payment platforms sent legal letters demanding Huobi remove their payment services from its over-the-counter (OTC) trading desk. Spoiler alert: they aren’t happy campers.

The Claims

According to the legal letters, Alipay and WeChat Pay expressed that using their services—and dare we say, their logos—on the Huobi OTC platform is unauthorized. The kicker? Huobi has allegedly been permitting users to upload QR codes from both payment giants, allowing them to conduct transactions without a permission slip.

Huobi’s Response

In what seems like a scene straight out of a courtroom drama, Huobi fired back on January 29, denying ever receiving any letters from Alipay or WeChat Pay. They’re basically saying, “Listen, we’re just showing a payment link here, folks! No cooperation, just peer-to-peer payments happening over here. Chill!”

A History of Tensions

This isn’t the first time Alipay has tightened the screws on crypto transactions. Back in August 2018, they limited accounts using Alipay for OTC Bitcoin trading and even launched a monitoring system for “key websites and accounts.” WeChat has had its own rocky relationship with crypto, blocking ICO-related accounts and even shutting down the sales channel of Bitcoin mining heavyweight Bitmain due to alleged licensing violations.

Huobi’s Standing

Despite the tumultuous waters, Huobi is still swimming strong! As of now, it’s the third-largest global cryptocurrency exchange, boasting an impressive average daily trading volume of around $393 million according to CoinMarketCap. That’s a lot of virtual cash shuffling about!