Crypto fund ads identified on Alipay’s homepage amid Chinese Crypto ban

Alipay, a Chinese payment platform, reportedly advertised spot Bitcoin exchange-traded funds (ETFs) on its homepage. The advert directed users to invest in Huabao Overseas Technology C (QDII-FOF-LOF).

According to community users, Alipay featured adverts promoting a crypto fund on its homepage on December 12. Users highlighted the ads stated, “Global investment, cryptocurrency soaring, start investing from 10 yuan, get on board now.”

Community users receive Bitcoin ETF ads on Alipay’s homepage

Huabao Overseas Technology C (QDII-FOF-LOF), an open-end fund, reportedly indirectly holds Coinbase stocks and ARK Invest spot ETF by investing in Wood Sister’s fund. Huabao Overseas technology has a limit mechanism that only allows users to buy 1000 yuan daily on Alipay. 

According to the Huabao Overseas Technology Equity Securities Investment Fund report for Q3 2024, the fund mainly invests in overseas technology-themed funds such as Exchange-Traded Funds (ETFs). The company added that it ultimately invests in stocks that use technology as an anchor for the long-term development of enterprises. 

The adverts on Alipay’s homepage sparked conversation among users, some of whom predicted the next phase would be purchasing Bitcoin directly with Alipay. 

Yifan He, CEO of Chinese blockchain firm Red Date Technology, Ant Financial Services Group, stated Alipay’s parent firm offers US ETF trading services. He expressed the firm was expected to advertise the BTC ETF.

Yifan added the Chinese government would not be alarmed as long as traders could not illegally transact yuan out of the state. The CEO highlighted the recent ETF-related ads on Alipay were not direct offerings from the Ant group.

He noted that the ads were published by a third party who had identified some loopholes on the platform. Yifan suggested that the ads were shortlived and did not indicate the Chinese government’s stance on cryptocurrencies.

Industry figures predict China’s shift in cryptocurrencies stance

Alipay declared its ban on BTC and other crypto-related transactions in 2019, complying with the Chinese government’s ban on cryptocurrencies two years earlier. The government has since introduced new measures to enforce the ban, such as interdepartmental coordination among various state agencies. 

However, despite the ban, a People’s Court in China published a report that indicated digital assets were still recognized as legal property in the state. The adverts have reportedly fueled more speculation in the crypto community on whether the Chinese government will likely lift its cryptocurrency ban. 

China-based crypto mining chip designer Nano Labs further fueled speculation after it announced on November 11 that it would accept Bitcoin as a mode of payment. In the announcement on a business account on Coinbase, the company stated that the stance was necessary in the ever-evolving digital economy.

Galaxy Digital General Manager Mike Novogratz suggested that China would lift the crypto ban at the end of 2024. Zhao Changpeng supported these sentiments at the Bitcoin MENA conference in Abu Dhabi. He stated that the trend of building Bitcoin reserves is inevitable globally despite China’s uncertain stance on cryptocurrency. Changpeng noted that other countries will likely adopt the trend after the USA builds on BTC reserves. 

Former Chinese Finance Minister Lou Jiwei also emphasized that China needed to assess cryptocurrency developments during Beijing’s 2024 Tsinghua Wudaokou Chief Economists Forum. He urged the state to be keen on advancements, especially with the United States shifting its stance on Bitcoin ETFs

Other players, however, remained skeptical of the likelihood of the Chinese government relaxing its stance on cryptocurrencies. For instance, Jack Wang noted in April that Hong Kong’s crypto exchange-traded funds would not have an impact on investors in mainland China.

He noted that although the ETF issuers had close ties with mainland China, they could not provide Bitcoin or Ether exposure to Chinese investors due to the current ban.

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap