Leading cryptocurrency exchange Binance is introducing peer-to-peer (P2P) trading functionality for Bitcoin (BTC), Ether (ETH) and Tether (USDT).
According to the company’s announcement, the Malta-based platform will be supporting P2P crypto trading with the Chinese yuan (CNY). Traders can use the service by downloading the updated Binance Android app.
“Access to P2P trading will be initially provided to Android users (Version: 1.12.1) that have Binance accounts registered for over 30 days. We will slowly roll out this service to iOS and web interface users going forward.”
Adds Binance CEO Changpeng Zhao,
“Last night, Binance Launches P2P Trading, starting with China. Most of CT probably can’t use it yet, but 1.4 billion people can. We will expand the service to other regions soon. Anything that makes it easier to get crypto.”
In addition to the new trading service, Binance is expanding fiat onramps for traders in China.
In response to a question about using Alipay and Wechat to facilitate Bitcoin and crypto purchases, Zhao says the highly popular mobile payment apps in China are now supported.
Centralized crypto asset exchanges are not allowed to operate in China. The nation’s central bank, the People’s Bank of China (PBoC), began cracking down on crypto-related businesses in late 2017 due to the large number of scams orchestrated under the guise of initial coin offerings.
However, interest in crypto remains with enthusiasts seeking out various ways to gain access. Chinese residents can purchase Bitcoin and other cryptocurrencies through P2P platforms or via over-the-counter (OTC) desks. Digital asset exchanges reportedly facilitate CNY to BTC/USDT conversions through P2P OTC desks.
Earlier this year, WeChat’s management made changes to its payment policy, warning that it will be suspending user accounts that are involved in cryptocurrency trading. Alipay is also reportedly blocking accounts that are conducting Bitcoin OTC trading.
In statements shared with TheBlock, a Binance representative notes,
“Technically, Binance as a P2P platform itself is not integrated with WeChat/Alipay payment, but the vendors or users on the platform accept WeChat/Alipay transaction for crypto trading. Binance only provides the onramp for OTC trading by building an intermediary platform on which both the merchants and the users trade freely.”
However, an Alipay spokesperson says that the payment processor is closely monitoring OTC trades. They also note that the platform’s management is constantly working to identify “irregular behavior” in order to ensure compliance with regulations.
The Alipay spokesperson states,
”If any transactions are identified as being related to bitcoin or other virtual currencies, we immediately stop the relevant payment services.”
Binance is in the process of expanding its fiat-to-crypto gateways. The exchange has been launching its services throughout the world, including the US, Singapore, Uganda and self-governing British dependency Jersey.
The exchange is also preparing to introduce its fiat-to-crypto on-ramps in Argentina, Bermuda and Turkey.