Binance Dips its Toes Back into China by Testing Alipay
Binance’s Changpeng Zhao publicly confirmed on Twitter that the exchange accepts fiat through Alipay and WeChat , and stressed it in an official statement. This is obviously too careless for Zhao to announce the issue that triggered Alipay’s ban on all crypto-related transactions.
Now Zhao’s public confirm no doubt forcing Alipay to make a public statement to respond. Under the special circumstances of China, some things can only be done but can not be announced publicly. Although the crypto exchanges like Huobi, OKex all available for OTC transaction of Alipay or WeChat, they have never made an official statement. Earlier, WeChat and Alipay sent lawyer’s letters to the major crypto exchange Huobi, requiring the latter to remove the two payment methods from its over-the-counter (OTC) market and to cease using their logos illegally, to respond the lawyer’s letters, Huobi said they didn’t have the official cooperation between WeChat and Alipay. This ambiguous explanation gives Alipay and Wechat an out.
Recently, the volume of crypto-crypto transactions has shrunk and Binance is busy in finding new profit growth points. Binance has set up a fully compliant US station and launched stable coin, even stepping into the contracts market. But the US market, stable coin and contracts are long-term projects with large investment and slow profits. Therefore, Binance turns its eyes to China market which is potential and active.
Besides, there is no trend of stricter regulation for crypto in China. And crypto exchanges in China have found a way to develop in China. It is undoubtedly a wise decision for Binance to return to China and compete with Huobi and OKex.
The most important thing in the China market is the fiat interface. Unfortunately, Binance always pays more attention to coin-coin transaction than OTC. The introduction of OTC is obviously a way for Binance to make up for its ecology.
The high profile of Binance’s announcement may be a free advertising for itself. The policy in China is still tough, especially in the current economic downturn. The high-profile action of Binance has created momentum for its OTC transaction, but it may also arouse the attention of the regulators to the OTC transaction of the crypto space.