Alipay has issued a firm public denial that it supports cryptocurrency trading or related services, responding to claims from peer‑to‑peer (P2P) marketplace Peer that users could buy and sell USDC using Chinese yuan settled through Alipay.
China’s payments giant stated that any suggestion of crypto purchases through its network is “false and unauthorized,” warning users that such activity could expose them to account‑security risks.
Published across Alipay’s official Chinese and English social‑media channels, the firm’s clarification shows adherence to China’s strict prohibition on domestic crypto trading and highlights the regulatory sensitivity surrounding fiat‑to‑crypto payment routes.
Denial Prompted by Peer’s USDC Beta Announcement
The controversy began when Peer announced on October 27 that its platform had launched a beta feature enabling users to buy and sell USDC using Chinese yuan payments routed through Alipay.
Peer described the service as a user‑driven P2P payment flow rather than an official integration, noting that sellers lock USDC into an on‑chain escrow contract on the Base network while buyers send yuan directly via Alipay. Once payment is confirmed, the escrow releases the USDC to the buyer.
Peer reported that since August 21, 45 buyers had completed 107 transactions totaling approximately $7,094, indicating modest early‑stage usage. The platform emphasized that it had “no official partnership” with Alipay and that the payment option was simply a method chosen by users rather than a sanctioned integration.
However, the announcement triggered confusion among users and observers, prompting Alipay to issue a direct and unambiguous statement the following day.
Alipay’s Statement: No Crypto Trading, No Authorization, No Exceptions
On October 28, Alipay publicly rejected the claims, stating that it does not authorize virtual‑currency transactions or related services across its payment network.
The company warned that third‑party platforms advertising crypto purchases through Alipay were making unauthorized claims and urged users to protect their accounts and funds.
Alipay’s message was framed as a consumer‑protection warning. The company highlighted that users who engage in crypto‑related transfers through its rails could face account‑security risks, especially given its monitoring systems designed to detect and shut down crypto‑linked activity.
These systems have been in place since at least 2021 and are aligned with China’s regulatory stance against digital‑asset trading.
The payments giant did not specify whether it would block Peer‑related transactions or impose account restrictions, but its statement made clear that any crypto‑related use of Alipay is prohibited.
China’s Strict Ban on Domestic Crypto Trading
Alipay’s denial is consistent with China’s long‑standing restrictions on cryptocurrency activity. Domestic crypto‑exchange trading has been banned since 2021, and authorities tightened restrictions further in February 2026.
The rules prohibit fiat‑to‑crypto transactions through domestic payment channels, including Alipay and WeChat Pay.
As one of China’s most widely used payment platforms, Alipay plays a central role in enforcing these restrictions. The company has repeatedly distanced itself from crypto‑related claims, issuing similar denials in 2019 and 2024 when third parties suggested that its services could be used for digital‑asset purchases.
The latest incident reflects the ongoing tension between user‑driven P2P crypto activity and China’s strict regulatory environment.
