Alipay Denies Supporting Crypto Trading After Peer Integrates USDC

Chinese payments giant Alipay has denied supporting cryptocurrency trading through third-party platforms after peer-to-peer marketplace Peer announced a service allowing users to buy and sell USD Coin ($USDC) with Chinese yuan payments, according to CryptoNews.

Peer launched beta support for buying and selling $USDC using Chinese yuan payments through Alipay. According to the marketplace, the arrangement has been operating since August 21, 2026, recording 107 transactions worth approximately $7,094 involving 45 buyers. The marketplace processed an average of approximately $66.30 per transaction, utilizing an onchain escrow arrangement where sellers deposit stablecoins into a smart contract.

Alipay Response and Regulatory Context

According to Alipay’s October 28 statement, the company does not authorize virtual currency transactions or related services through its payment network. The firm warned customers against unauthorized crypto services, citing risks to funds and account security.

China’s restrictions prohibit cryptocurrency trading services, including fiat-to-crypto transactions through domestic payment channels. Chinese authorities reinforced the regulatory framework in February 2026, when the People’s Bank of China and seven other government departments classified activities involving virtual currency trading and fiat-to-crypto exchanges as prohibited financial operations.

Key facts

• Alipay denied authorizing cryptocurrency trading following Peer’s $USDC payment announcement.
• Peer reported 107 transactions worth approximately $7,094 involving 45 buyers since August 21, 2026.
• Peer clarified it has no formal partnership with Alipay, describing the system as user-directed payments between individual traders.
• China's central bank and other government departments classified virtual currency trading as prohibited financial operations in February 2026.