Tencent\u2019s WeChat said on Tuesday it is temporarily suspending registration of new users in China as it works to comply with \u201crelevant laws and regulations,\u201d the latest Chinese firm to face regulatory scrutiny in the world\u2019s largest internet market.<\/p>\n
In a social media post, Tencent said it is \u201cupgrading\u201d its security technology to align with all relevant laws and regulations and while this process in underway \u201cregistration of new Weixin (WeChat\u2019s Chinese app) personal and official accounts has been temporarily suspended.\u201d<\/p>\n
\u201cRegistration services will be restored after the upgrade is complete, which is expected in early August,\u201d said WeChat, which has amassed over 1.2 billion monthly active users in China as of earlier this year.<\/p>\n
It\u2019s not immediately clear which law WeChat is citing in its announcement but the move comes amid a broad crackdown on tech firms by Chinese regulators<\/a>. The crackdown has wiped billions of dollars in market cap for Chinese firms in recent weeks and many high-profile global investors including SoftBank are impacted by it.<\/p>\n This is the first time WeChat, which operates as a super app in China, has had to take a step of this kind in more than a decade. In addition to offering a messaging service, Weixin also allows users to make online payments and access a range of financial services.<\/p>\n (In other markets, it\u2019s a different story. Donald Trump had signed an order<\/a> to ban transactions with TikTok and WeChat in the U.S. last year. President Joe Biden revoked and replaced<\/a> those actions last month.)<\/p>\n Some analysts believe that the Chinese government is concerned about the growing influence of tech firms in the country and also the privacy of its citizens\u2019 data.<\/p>\n Earlier this month, China\u2019s cybersecurity regulator ordered ride-hailing giant app Didi to stop signing up new users<\/a>. That move had come days after Didi\u2019s $4.4 billion initial public offering on the New York Stock Exchange. Didi\u2019s app, which has been pulled from the app stores in China, illegally collected personal data of its customers, the regulator accused.<\/p>\n\n