Chinese payments giant Alipay denies supporting crypto trading via Peer

Chinese payments giant Alipay has denied supporting cryptocurrency trading through third-party platforms after peer-to-peer marketplace Peer announced a service allowing users to buy and sell USDC with Chinese yuan payments.

According to Alipay’s October 28 statement, the company does not authorize virtual currency transactions or related services through its payment network. The response directly addressed Peer’s announcement that customers could use Alipay to settle cryptocurrency purchases during a beta rollout.

“Claims that Alipay enables crypto purchases on third-party platforms are false and unauthorized,” the payments company said, warning customers to protect their funds and accounts when encountering such offers.

Peer had announced the feature on October 27, describing a marketplace where buyers could pay sellers in Chinese yuan to receive USDC, while sellers could exchange the stablecoin for yuan payments.

Alipay rejects Peer’s USDC payment announcement

In its October 27 announcement, Peer described the Alipay payment option as live in beta and directed users to its Chinese-language account for instructions and customer support. The company presented the service as a way to settle USDC trades through ordinary peer-to-peer transfers.

Under the arrangement, a buyer sends yuan directly to another user through Alipay. Once the seller confirms payment, Peer facilitates the delivery of USDC through its cryptocurrency settlement system.

The arrangement does not require Alipay to issue USDC or operate a cryptocurrency exchange. However, its payment service would still carry the fiat portion of transactions connected to buying or selling digital assets, an activity the company says it does not authorize.

Peer subsequently clarified that it had no formal partnership with Alipay. The marketplace characterized the system as user-directed payments between individual traders, distancing its operation from any official integration with the Chinese payments provider.

Alipay’s rejection followed the public announcement by roughly one day. Its warning addressed customers using outside platforms that advertise cryptocurrency purchases through its services, including those that present access to Alipay as a supported payment method.

Peer reports 107 USDC trades through Alipay

Peer said the payment arrangement had been operating since August 21, before its public beta announcement in October. During that period, the platform reported 107 completed transactions involving 45 buyers, with total trading volume of approximately $7,094.

The figures represent activity reported by Peer, not transaction totals independently published by Alipay. Based on the stated numbers, the marketplace processed an average of approximately $66.30 per transaction, indicating relatively small individual orders.

The company uses an onchain escrow arrangement in which the seller deposits USDC into a smart contract before the transaction proceeds. Once the buyer’s fiat payment has been verified, the contract releases the stablecoins to the buyer’s wallet.

Peer’s description of the trading process separates the movement of yuan between users from the transfer of cryptocurrency onchain. The reported transaction totals cover activity associated with the beta service and do not establish the volume of all cryptocurrency-related payments occurring through Alipay.

The company introduced Chinese-language guidance as part of its October announcement, giving potential traders instructions for participating in the USDC marketplace.

China maintains restrictions on cryptocurrency payments

Alipay’s position follows years of restrictions on cryptocurrency transactions within mainland China. The payment provider previously established monitoring procedures targeting accounts used for unauthorized crypto-related transfers.

In earlier coverage, crypto.news documented Alipay’s monitoring of crypto-linked payments, including measures to identify and restrict accounts involved in over-the-counter digital currency trading.

Chinese authorities reinforced the regulatory framework in February 2026, when the People’s Bank of China and seven other government departments issued updated cryptocurrency restrictions. The rules classified activities involving virtual currency trading, fiat-to-crypto exchanges and related financial services as prohibited financial operations.

The notice covered Bitcoin, Ether and stablecoins while introducing further requirements governing tokenized real-world assets. Authorities maintained that cryptocurrencies do not have the legal status of sovereign money and cannot circulate as currency within China.

In June, the central bank outlined further anti-money laundering measures targeting virtual currency transactions, underground banking networks and cross-border financial crime.

The policy document described coordinated investigations involving the central bank, public security authorities and other government agencies. It identified virtual currencies among the methods used by criminal networks to move funds across jurisdictions and conceal transaction trails.

Alipay’s October 28 response maintained its prohibition on cryptocurrency services and urged users to exercise caution when third-party platforms advertise digital asset purchases using its payment accounts.