Digital currency is on the headlines of popular searches again. This time, Alipay issued a statement: Alipay is prohibited from being used for digital currency transactions.
Everyone in the circle knows that the cause is that Binance founder Zhao Changpeng publicly confirmed on Twitter that Binance’s newly opened OTC can be recharged with Alipay and WeChat Pay, which triggered Alipay to issue the above public statement.
This is a bit strange. As one of the three major exchanges, it is impossible for Binance not to know that domestic payment channels do not allow virtual currency transactions. Changpeng Zhao is so high-profile, in exchange for being "slapped in the face" in an instant, why is this?
Uncle Kai believes that this is a change in the general environment that has led to the adjustment of the entire strategic direction of Binance.
The digital currency trading market has gone through three stages of development. Before 2017, bitcoin transactions dominated, with 80% of global market transactions coming from bitcoin. 2017 was the year when currency transactions exploded, and the share of bitcoin transactions fell to 33%. Since 2018, currency transactions have declined, and Bitcoin has returned to the C position. The proportion of transactions has gradually increased, and now it has reached an absolute dominance of 70%. (See Uncle Kai's quick comment: Bitcoin crushes tokens, but is surpassed by stablecoins. Who will control the ups and downs in the future?)
It is precisely because of the rapid rise of Binance in currency trading in 2017, and Binance's focus on overseas markets that it has safely escaped the impact of the "9.4" new regulations, and quickly ascended to the status of the global overlord of digital currency transactions.
However, the situation is pressing recently. Binance’s proud currency transaction volume has shrunk, overseas markets have not been warm, and the IEO model that ignited a wave of market at the beginning of the year has now died down. Binance needs to find new profit growth points.
Binance has made frequent moves recently: opening a fully compliant Binance US station, launching Binance stablecoins, and getting involved in the contract market that has been shunned. The U.S. market, stablecoins and contracts, these three directions are all long-term projects with large investment and slow results, and there will be no visible results in a while.
Therefore, Binance turned its attention to the domestic trading market. This is the most potential and most active market in the world, and it is undoubtedly a coveted piece of cake. Another reason for Binance to return to the domestic market is that since the "9.4" new regulations, the supervision of digital currencies has not become stricter. Huobi and OK have already explored a path for domestic development. It is undoubtedly a wise strategic decision for Binance to return to China and catch up with Huobi and OK.
The picture comes from the Internet
The picture comes from the Internet
It can be said that Changpeng Zhao publicly confirmed on Weibo that Alipay and WeChat Pay can be connected, and emphasized in the official statement issued by Binance that this is obviously too careless.
Under the special environment in China, some things can only be done quietly and cannot be said publicly. Although the OTCs of friends and merchants have Alipay and WeChat payment interfaces, they never make official statements. Earlier, WeChat Pay and Alipay both issued legal letters to Huobi, requesting that Huobi remove the OTC payment channel and stop illegal use of its trademark. Huobi responded that the company has no official cooperation with WeChat and Alipay, and its transfers are all personal and personal. behavior between individuals. This explanation is ingenious and euphemistic, and it also has a step down for the payment method, so the matter is left alone.
Now that Changpeng Zhao has publicly confirmed it, it will undoubtedly force the payer to make a public statement in response. It seems that if Binance wants to return to China, it should learn from its friends and become more familiar with the domestic regulatory environment and ways of doing things.
Of course, this matter is not all bad for Binance.
Binance OTC started from scratch, accidentally touched Alipay and WeChat Pay, and also made a large-scale publicity advertisement for itself for free. At the same time, compared with other merchants, Binance belongs to those who are barefoot and not afraid of wearing shoes. If the payment channels are tightened due to this, the losses will be on the side of the merchants. It may be possible to absorb customers lost from friends.
It seems that Binance may not be a blessing in disguise.
Binance's return to China is obviously a bit unacceptable. The good news is that the prelude to the domestic competition of the three major exchanges has kicked off, and Uncle Kai and other people who eat melons are waiting for a good show.
