As a seasoned analyst with extensive experience in the global financial markets, I have witnessed the ebb and flow of trends and technologies that reshape the economic landscape. The recent development of Alipay featuring Bitcoin and cryptocurrency-related ads in mainland China is an intriguing turn of events, to say the least.
It appears that Alipay, the leading Chinese payment service provider with over a billion users, is rumored to have displayed advertisements pertaining to Bitcoin and other cryptocurrencies for its mainland China user base.
Users on the Chinese mainland have been noticing promotions for Bitcoin Exchange-Traded Funds (ETFs) on their Alipay home screens, according to a report by Sina Finance on December 12th.
“This ad encourages global participation in crypto investments, suggesting that the value of cryptocurrencies is rapidly increasing. You can start investing with just 10 yuan. Don’t wait; join now!
As a crypto enthusiast, I was intrigued by an advertisement that guided me towards Huabao Overseas Technology C (QDII-FOF-LOF). This fund is said to have a hidden connection with Coinbase’s shares and the ARK 21Shares Bitcoin ETF.
$140 daily purchase limit
Colin Wu, a well-known market analyst in our area, pointed out that daily purchases of the fund’s shares by mainland China users are capped at 1,000 Chinese yuan (approximately $137 USD). The least amount one can invest is just 10 yuan, which equals around $1.40 USD.
Wu pointed out that it had invested indirectly in Coinbase shares and the Ark spot Bitcoin ETF by putting money into Wood Sister’s fund. Moreover, Huabao Technology and numerous similar Quantitative Domestic Institutional Investors (QDIIs) promote cryptocurrency via Alipay.
On December 11th, it was first noted that Alipay was showcasing advertisements related to cryptocurrency. This information was shared by the local blockchain news outlet, ChainCatcher, who sourced their report from community findings.
Some users have reported seeing cryptocurrency advertisements on Alipay, leading to speculation that “it’s likely users will be able to purchase Bitcoin directly through Alipay in the near future.
crypto-moon reached out to both Alipay and Wu, seeking their input about the cryptocurrency advertisements on Alipay. However, they didn’t respond before the article went live.
US Bitcoin ETFs in mainland China “aren’t surprising”
As per Yifan He, the CEO of significant Chinese blockchain company Red Date Technology, it’s known that Ant Financial Services Group, which is Alipay’s parent firm, provides certain US Exchange-Traded Fund (ETF) trading services.
He expressed to CryptoMoon that it wouldn’t shock him if a Bitcoin ETF was allowed. Moreover, he mentioned that all trading activities are facilitated by Ant Group using the Chinese Yuan.
If individuals are unable to unlawfully transfer yuan outside the country, regulators will not view it as a significant risk or issue,” he stated.
As a crypto investor, I too have come to understand that the recent cryptocurrency advertisements on Alipay may not be a direct offering by Ant Financial, but rather, they might be ads placed by a third party who discovered certain loopholes.
“It doesn’t mean anything. They will disappear soon,” he said.
Alipay banned all Bitcoin-related transactions in 2019
In 2019, Alipay explicitly forbade all Bitcoin transactions within its system, reflecting a negative position towards cryptocurrencies, mirroring the unfavorable crypto policies of the Chinese administration.
At first, significant international cryptocurrency trading platforms such as Binance, Huobi, and OKX (previously OKEx) were based in mainland China. However, in the year 2017, these crypto exchanges were prohibited by mainland China.
The Chinese administration has consistently been against cryptocurrencies, implementing a multi-agency clampdown on them as recently as 2021. However, even with the prohibition, Chinese officials have continually asserted that cryptocurrency assets fall under the category of legal property, entitled to legal protection.
2024 saw a continuous rise in stock markets, with experts like Mike Novogratz (CEO of Galaxy Digital) hinting at speculations that China might lift its ban on Bitcoin in July. Yet, the crypto community remained unconvinced about this possibility.
According to data analyst Jack Wang from Bloomberg, it’s anticipated that crypto exchange-traded funds won’t be accessible to investors based in mainland China by April 2024.
Come November 2024, the Hangzhou-based company specializing in cryptocurrency mining chips, Nano Labs, began acknowledging Bitcoin as a form of payment for their products and services via a business account with Coinbase.
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2024-12-12 13:58