Chinese payments giant Alipay has refuted claims that it supports cryptocurrency trading through third-party platforms following an announcement by Peer, a decentralized peer-to-peer trading marketplace, about a new service enabling users to buy and sell the stablecoin USDC with Chinese yuan via Alipay’s payment network.
Alipay’s Statement and Peer’s Announcement
Peer stated on October 27 that it had launched a beta service allowing users to purchase USDC by paying sellers in yuan through Alipay, or to sell USDC in exchange for yuan. The platform encouraged users to seek support and guidance through its Chinese-language social media channels and highlighted the service as a new on-ramp for stablecoins in China.
Peer emphasized that buyers can pay for USDC directly in CNY using Alipay, while sellers receive yuan for their digital assets via the payment app; instructions and support are available in Chinese.
Less than 24 hours after the launch, Alipay released an official statement on October 28 clarifying that it does not authorize or support cryptocurrency transactions through its network. The company warned that any claims suggesting otherwise are both untrue and unauthorized, urging users to safeguard their funds and remain cautious about advertisements promoting the purchase of crypto using Alipay.
Alipay, a subsidiary of Alibaba Group, is one of China’s largest digital payment providers, serving over one billion users globally.
Mini dictionary: Peer is a decentralized marketplace that facilitates peer-to-peer cryptocurrency trades, allowing users to buy and sell digital assets like stablecoins with local currencies.
How the Peer Platform Operates
Peer’s platform employs an onchain escrow system to manage trades. The process begins when a buyer pays yuan directly to a seller through Alipay. Once the seller confirms receipt of payment, USDC tokens deposited in a smart contract escrow are released to the buyer’s wallet.
Peer clarified that no formal relationship exists with Alipay, and all payments are user-initiated rather than an official partnership with the payment provider.
According to Peer, the beta function has been live since August 21 and has seen 107 transactions from 45 buyers, reaching a total trading volume of about $7,094. This amounts to an average transaction value of approximately $66.30. Alipay has not provided independent confirmation of these figures.
| Metric | Reported Value |
|---|---|
| Total trades | 107 |
| Number of buyers | 45 |
| Total volume | $7,094 |
| Average per trade | $66.30 |
Regulatory Landscape in China
China has maintained longstanding prohibitions on cryptocurrency activities. Alipay has previously reported implementing monitoring procedures to detect and restrict accounts suspected of being used for over-the-counter crypto trading.
In February 2026, the People’s Bank of China and seven other state agencies published updated regulations explicitly banning cryptocurrency trading, fiat-to-crypto platforms, and related financial services. The new rules targeted assets such as Bitcoin, Ether, and stablecoins like USDC, reiterating that cryptocurrencies lack legal status as currency in the country.
Additionally, in June, China’s central bank unveiled further anti-money laundering measures aimed at preventing illegal activity associated with virtual currencies, underground banking, and cross-border capital flows.
Alipay’s statement repeated its commitment to adhering to Chinese regulations and reminded users that virtual currency purchases or transaction facilitation are not permitted on its platform. The company encouraged customers to report suspicious activities and be vigilant against non-official claims of cryptocurrency support.
