Originally published on: December 12, 2024
China’s leading payment platform, Alipay, which boasts over 1 billion users, has recently caught the attention of mainland Chinese users with Bitcoin and cryptocurrency-related advertisements.
Reported by Sina Finance on Dec. 12, Alipay users in mainland China were greeted with promotional ads for spot Bitcoin exchange-traded funds (ETF) on their homepages. The ads touted crypto investments with a minimum buy-in of 10 yuan, urging users to seize the opportunity for global investment in the soaring cryptocurrency market.
The ad directed users to Huabao Overseas Technology C (QDII-FOF-LOF) fund, offering indirect exposure to Coinbase stock and the ARK 21Shares Bitcoin ETF. Market observer Colin Wu revealed that mainland Chinese users are currently restricted to purchasing a daily maximum of 1,000 Chinese yuan ($137) worth of shares from the fund, with a minimum investment of 10 yuan ($1.40).
Wu highlighted the fund’s investment in Coinbase stock and the ARK ETF through Wood Sister’s fund, along with similar QDIIs advertising cryptocurrency on Alipay.
Initial reports on Alipay displaying crypto ads surfaced on Dec. 11, attracting attention from users who predicted the next step might be direct Bitcoin purchases using Alipay.
While Alipay and Wu have not responded to requests for comment on the crypto ads, CEO Yifan He of Red Date Technology noted that Ant Financial Services Group, Alipay’s parent company, does offer US ETF trading services, potentially paving the way for a Bitcoin ETF offering.
Despite Alipay’s previous ban on Bitcoin transactions in 2019, Chinese authorities have maintained an anti-crypto stance, with regulations in place to prevent illegal yuan outflows. The recent appearance of crypto ads on Alipay, He suggested, may be a loophole exploited by a third party and are unlikely to persist.
Despite a ban on crypto exchanges in 2017, China recognizes crypto assets as legal properties. The ongoing bull market of 2024 has led to speculation about a potential unbanning of Bitcoin, although industry figures and analysts remain cautious.
As the landscape of cryptocurrencies continues to evolve, the recent surge in crypto-related ads on Alipay hints at a shifting attitude towards digital assets in China.
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