It has been known for some time how Binance would expand its service to China. Although not as an official trading platform, the core service will remain virtually the same. New information regarding this venture has come to light in recent days. It seems there will be fiat support, as well as a close tie-in to WeChat and AliPay.
Binance Arrives in China
It was a matter of time until Binance would officially launch in China. While some people expected Binance China to become a thing – like Binance US – there is something else at play entirely. In fact, China doesn’t like foreign exchanges all that much unless they adhere to very strict rules. Exploring other options that still allow the company to provide similar services may be a better idea.
Keeping that in mind, the company has confirmed its peer-to-peer trading service has launched. It is not necessarily a website for users to visit, but more a service that will be integrated into mobile chat offerings. Web functionality will occur in the weeks to come, but for now, the functionality is limited to Android users only. It is a bold move but one that may prove to be rather successful in its own regard.
How Does it Work?
Unlike more traditional cryptocurrency trading services, the P2P trading service will use AliPay and WeChat as fiat currency on-ramps. That in itself is a remarkable, but also a smart decision. WeChat is incredibly popular in China and allows people to send money – in fiat currency – to one another without problems. The service also integrated QR code support some time ago, which makes the jump to Bitcoin and other currencies not that complicated.
AliPay is another interesting option in this regard. The dominant Chinese payment method hasn’t been used for cryptocurrency transactions in an official capacity. However, they are also not against being involved in this particular business model, which is a good thing. Users will be able to trade Bitcoin, Ethereum, and USDT against the Chinese Yuan. These transactions will work both ways, by the look of things, which is also worth keeping an eye on.
What Comes Next?
Other than iOS and web interface support, there is a genuine chance more currencies will be added over time Which currencies those would be, primarily depends on how successful this P2P venture turns out to be. Binance has also hinted at how other markets may receive a similar treatment. This would primarily apply to markets where current regulations prevent cryptocurrencies from thriving, such as India.