Certain mainland Chinese users of Alipay encountered advertisements encouraging them to invest up to $137 per day in a fund offering indirect exposure to a U.S. spot Bitcoin ETF and Coinbase.
Alipay, the largest payment platform in China with over 1 billion users, has reportedly displayed advertisements related to Bitcoin and cryptocurrencies for users located in mainland China. According to local news agency Sina Finance on December 12, many users in mainland China encountered promotional content concerning spot Bitcoin exchange-traded funds (ETFs) on their Alipay homepages.
The advertisement encouraged crypto investments, stating: “Global investment, cryptocurrency on the rise, minimum investment of 10 yuan, join us now.”
It directed users to Huabao Overseas Technology C (QDII-FOF-LOF), which is said to have indirect exposure to Coinbase stock and the ARK 21Shares Bitcoin ETF.
Alipay was banned all Bitcoin-related transactions in 2019!
Today, it was being promoted with a top limit, $140/day
Colin Wu, a well-known analyst of the local market, stated on X that users in mainland China are currently restricted to acquiring a maximum of 1,000 Chinese yuan (approximately $137) worth of the fund’s shares each day. The minimum investment required is 10 yuan, equivalent to about $1.40. He further remarked in another post on X,
“It indirectly invested in Coinbase stock and Ark spot Bitcoin ETF by investing in Wood Sister’s fund. In addition, Huabao Technology and many similar QDIIs advertise cryptocurrency on Alipay,” – spotted by Wu
The initial reports regarding Alipay displaying advertisements related to cryptocurrency emerged on December 11, as reported by the local blockchain news outlet ChainCatcher, which referenced information from community sources. Several users verified that they had encountered cryptocurrency advertisements on Alipay, speculating that the subsequent development would involve the ability to purchase Bitcoin directly through the platform.
Cointelegraph reached out to Alipay and Wu for comments concerning the cryptocurrency advertisements on Alipay; however, no response had been received by the time of publication.
“So allowing the Bitcoin ETF would not surprise me,” He told Cointelegraph. He further added, “As long as people can’t move yuan out of the country illegally, the regulators won’t treat it as a huge risk and problem”.
Regulations in China
Not all observers regard this as a permanent transformation. Certain industry experts propose that the emergence of these advertisements may be temporary, taking advantage of transient loopholes instead of indicating a fundamental change.
Nonetheless, the existence of these promotions is significant, particularly in light of the Chinese government’s traditionally stringent position on direct cryptocurrency trading and transactions. In fact, Alipay officially prohibited Bitcoin-related transactions in 2019, in accordance with the wider anti-cryptocurrency policies established by Beijing.
China’s stringent regulatory framework has resulted in the expulsion of leading cryptocurrency exchanges and a thorough crackdown on all types of crypto trading in recent years. The emergence of advertisements coincides with a bullish market and circulating speculation regarding a possible easing of regulations in China concerning cryptocurrencies.
Although there have been no definitive indications from the mainland to lift its ban, actions taken by firms such as Hangzhou-based Nano Labs, which has started accepting Bitcoin via Coinbase, imply a potential shift in policy regarding crypto transactions within the nation’s borders.
Additionally, Changpeng Zhao (CZ), the former CEO of Binance, during his address at the 2024 Bitcoin MENA Conference held in Abu Dhabi, has alluded to the possibility of a Bitcoin reserve in China .
