Alipay has denied supporting cryptocurrency trading through outside platforms, issuing a statement after peer-to-peer marketplace Peer announced a service for buying and selling USDC with Chinese yuan.
On October 27, Peer launched a beta feature allowing users to trade USDC for Chinese yuan via Alipay. Under the system, buyers send yuan directly to sellers through Alipay, and once payment is confirmed, Peer delivers USDC using an onchain escrow mechanism where the seller deposits stablecoins into a smart contract that releases the coins after yuan payment verification.
Alipay responded on October 28, stating the company does not authorize virtual currency transactions or related services on its payment network. The statement said, "Claims that Alipay enables crypto purchases on third-party platforms are false and unauthorized."
Peer later clarified it has no formal partnership with Alipay, describing the arrangement as payments directed by individual users rather than an official relationship. The platform reported the service had been operating since August 21, with 107 completed trades involving 45 buyers and total volume of approximately $7,094.
Regulatory Context
China has maintained restrictions on cryptocurrency transactions for years. In February 2026, the People's Bank of China and seven other government departments issued updated rules classifying crypto trading, fiat-to-crypto exchanges, and related services as banned financial activities. The rules specified that cryptocurrencies are not legal money and cannot circulate as currency in China.
Alipay has previously implemented monitoring systems to identify and limit accounts used for over-the-counter crypto trading. In June, China's central bank outlined new anti-money laundering measures targeting virtual currency trades and cross-border financial crime.
Alipay urged customers to protect their funds and warned users to exercise caution when outside platforms advertise crypto purchases using the Alipay service.
