China’s big two digital payment platforms Alipay and WeChat Pay have issued separate statements on Thursday making explicit their policies forbidding transactions related to cryptocurrency trading.
Why it matters: The move follows several media reports suggesting that cryptocurrency exchange Binance has started accepting fiat currencies via Ant Financial’s Alipay and Tencent’s WeChat Pay.
Malta-based Binance, considered one of the largest cryptocurrency exchanges in the world, announced on Wednesday a new peer-to-peer (P2P) trading function that allows Chinese users to trade cryptocurrencies against the Chinese yuan.
P2P trading circumvents Chinese laws banning cryptocurrency exchanges, allowing traders to instead settle transactions directly with one another.
“To reiterate, Alipay closely monitors over-the-counter transactions to identify irregular behavior and ensure compliance with relevant regulations.
If any transactions are identified as being related to bitcoin or other virtual currencies, @Alipay immediately stops the relevant payment services.”