Alipay Bitcoin Transaction Support Officially Denied

Alipay bitcoin transaction support has been officially denied

The CEO of mayor cryptocurrency exchange Binance recently announced that the platform introduced the support of fiat currencies through services such as Alibaba’s Alipay and Tencent’s WeChat.

However, shortly after the announcement, an Alipay Bitcoin transaction support was officially denied. Alipay also emphasized that it is not affiliated with the exchange and closely monitors transactions that deal with cryptocurrencies.

China’s crypto regulations are very strict

The Chinese central government has a strict policy on cryptocurrencies such as Bitcoin. Financial institutions in the nation are officially restricted from conducting cryptocurrency-related transactions. An Alipay Bitcoin transaction support would therefore have been hard to believe in the first place.

On the 5th of March 2013, China’s Central Bank, the People’s Bank of China (PBoC), made the first step towards a cryptocurrency regulation by disallowing banks from processing bitcoin-related transactions. Four years later, during the cryptocurrency bull run of 2017, Chinese policymakers introduced a ban on all crypto exchanges and trading platforms.

On top of that, in 2018, the State Administration of Foreign Exchange managed by director Pan Gongsheng announced that it would put a nationwide stop to cryptocurrency mining, a fundamental process of the technology.

Although a majority of cryptocurrency mining facilities were shut down, China is still the leading country when it comes to mining. To place further pressure on mining, the ‘National Development and Reform Commission’ (NDRC) sought to add the cryptocurrency sector to its revised list of industries that should be restricted, removed or encouraged in April 2019.

An Alipay Bitcoin transaction support is not possible

On Wednesday, the CEO and founder of Binance Changpeng Zhao tweeted that the exchange supports fiat on-ramp through services such as Alipay and WeChat Pay.  While Tencent’s mobile platform has not  released a statement concerning the announcement, Alipay has swiftly confirmed that it complies with the current regulatory framework in China. An Alipay Bitcoin transaction support or the support of transactions related to other cryptocurrencies has therefore been officially denied.

Furthermore, the company states that it monitors over-the-counter (OTC) transactions in order to recognize improper transactions and ensure compliance.

Alipay has not partnered with Binance

Changpeng Zhao later on clarified that there is no official business relationship with Alipay and that the announced payment methods are a part of the newly released peer-to-peer (P2P) trading system which features the Chinese yuan as the fiat trading pair.

It remains unusual that the exchange would introduce the payment methods in the first place if Chinese payment systems are forbidden from dealing with cryptocurrency-related transactions anyway. It is therefore no wonder that Alipay has made such a fast statement to deny any reports about a possible Alipay Bitcoin transaction support.

Still, China has a large crypto community which currently relies on P2P platforms such as Local Bitcoins and Hodl. On top of that, a survey at the beginning of the year also concluded that 40% of the questioned Chinese were planning to invest in cryptocurrencies in the future.

 

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