On October 28, 2026, Chinese payments giant Alipay publicly denied authorizing cryptocurrency trading through third-party services after peer-to-peer marketplace Peer announced a beta integration for buying USDC with Chinese yuan. Peer reported handling $7,094 across 107 transactions since August 2026 using an onchain Base network escrow setup, while clarifying it holds no formal partnership with Alipay. Alipay warned users that unauthorized crypto transactions violate regulations and put customer accounts at risk of enforcement.
Alipay's response and stance
- ▪Alipay stated on October 28, 2026, that it does not authorize virtual currency or cryptocurrency trading and related services through its payment network.
- ▪Alipay issued consumer protection warnings advising users to exercise caution and protect their accounts and funds when encountering third-party crypto payment offers.
- ▪Alipay released its October 28, 2026 statement in both Chinese and English on social media.
- ▪Alipay characterized third-party claims that its network enables cryptocurrency purchases as untrue, false, and unauthorized.
- ▪Alipay has previously issued public denials and rejected third-party associations with cryptocurrency transactions in 2019 and 2024.
Peer's USDC trading test
- ▪Peer announced a beta service allowing users to buy and sell USDC with Chinese yuan payments settled through Alipay
- ▪Peer reported that 45 buyers completed 107 transactions totaling approximately $7,094 during its Alipay service test between August 21, 2026, and late October 2026.
Peer's trading mechanism
- ▪Peer's trade process releases escrowed USDC to a buyer's wallet upon verification of direct Alipay yuan transfer or returns funds after a 6-hour order window expires.
- ▪Peer charges a service fee of up to 0.95% plus cross-chain charges for its peer-to-peer trading setup.
- ▪Under Peer's trading mechanism, USDC sellers deposit tokens into an onchain smart contract escrow on the Base network prior to transaction completion.
Chinese crypto regulations and risks
- ▪Using payment channels like Alipay for cryptocurrency transactions in China carries risks of account suspension and loss of funds.
- ▪Alipay operates internal monitoring procedures designed to detect, track, and suspend accounts involved in over-the-counter or peer-to-peer cryptocurrency transactions.
- ▪Chinese authorities maintained anti-money laundering measures in June 2026 targeting virtual currencies used by criminal networks for cross-border fund movements.
- ▪The People's Bank of China and seven other government departments issued updated rules in February 2026 classifying virtual currency trading and fiat-to-crypto exchanges as illegal financial operations.
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