Chinese payments giant Alipay has publicly denied authorizing cryptocurrency trading after decentralized peer-to-peer marketplace Peer announced a beta service allowing users to buy and sell USD Coin (USDC) using Chinese yuan payments.
In a statement posted on October 28, 2026, Alipay said claims that it enables crypto purchases on third-party platforms are false and unauthorized. The company warned customers to protect their funds and account security, emphasizing that it does not support virtual currency trading or related services through its payment network.
The warning followed Peer’s October 27 announcement describing a marketplace in which buyers pay sellers in Chinese yuan through Alipay to receive USDC, while sellers can exchange the stablecoin for yuan. Peer later clarified that it had no formal partnership or technical integration with Alipay, framing the payment flow as transfers between individual users rather than an approved cryptocurrency payment service.
Peer said the arrangement had been operating since August 21, before the public beta announcement. The platform reported 107 completed transactions involving 45 buyers, with total volume of approximately $7,094, an average of roughly $66 per transaction. Under the described process, sellers deposit USDC into a smart contract on the Base network; buyers send yuan directly to sellers through Alipay; and once payment is confirmed, the escrow contract releases USDC to the buyer's wallet. Peer’s documentation also mentions a maximum service fee of 0.95%, with possible additional charges for cross-chain transfers.
Alipay’s stance is consistent with China’s long-standing restrictions. Chinese authorities declared cryptocurrency exchange activities illegal in September 2021 and reinforced the framework in February 2026, when the People’s Bank of China and seven other departments updated rules covering virtual currency trading, fiat-to-crypto exchanges, and related financial services. In June 2026, the central bank outlined further anti-money laundering measures targeting virtual currency transactions and cross-border financial crime.
Alipay has not announced whether specific accounts have been restricted or whether Peer’s payment option has been technically disabled, but it has previously monitored transactions for suspected cryptocurrency-related activity and can restrict accounts involved in prohibited services.
