Alipay Denies Involvement in Cryptocurrency Transactions, Rejects USDC Payment Feature from Peer

Warning Against RMB Payments via Third-Party Platforms

China's payment giant Alipay has stated that it does not support cryptocurrency transactions through third-party platforms, following the announcement by decentralized marketplace Peer of a USDC payment feature in RMB.

On October 28, 2026 (Wednesday), Alipay issued a statement declaring that it does not authorize cryptocurrency transactions or related services through its payment network. The claim that users can purchase cryptocurrencies on third-party platforms using Alipay was described as "false and unauthorized," warning users to protect their funds and accounts.

This statement was released the day after Peer announced the beta version of its USDC trading feature using RMB payments via Alipay on October 27. According to Peer, buyers can send RMB to sellers using Alipay and receive USDC in return. Sellers can also sell USDC and receive payment in RMB.

@peerxyz @Peer_zh Alipay does not support virtual currency (crypto) trading or related services. Claims that Alipay enables crypto purchases on third-party platforms are false and unauthorized. We remind users to exercise caution to protect their funds and account safety.

--- Alipay (@Alipay) October 28, 2026

In Japanese:
Alipay does not support cryptocurrency (crypto asset) trading or related services. Claims that Alipay enables crypto purchases on third-party platforms are false and unauthorized. We remind users to exercise caution to protect their funds and account safety.

However, Alipay has not approved Peer’s services and does not recognize the provision of payment services for cryptocurrency transactions. Peer also later clarified that there is no formal partnership or technical integration with Alipay. The company explained that it operates a system for peer-to-peer transfers between users, which is not an official collaboration with Alipay.

Alipay has previously monitored suspicious cryptocurrency-related transactions and stated that accounts involved in prohibited services may be restricted. Meanwhile, the recent statement did not confirm any new measures such as account restrictions or the disabling of payment functions related to Peer.

107 Transactions Reported, Background of China's Cryptocurrency Regulations

Peer's USDC payment feature combines peer-to-peer transfers in RMB with blockchain escrow. Sellers deposit USDC into a smart contract on the Base network, and buyers pay in RMB through Alipay. Once payment is confirmed, the deposited USDC is sent to the buyer's cryptocurrency wallet.

According to Peer, this system had been operational since August 21, prior to the public beta announcement, with 107 transactions completed by 45 buyers, totaling approximately $7,094 (about 1.11 million yen). These figures were reported by Peer, and no independent verification by Alipay has been conducted. Peer’s documentation states that the maximum service fee is 0.95%, and additional charges may apply for cross-chain transfers.

In China, as of September 2021, cryptocurrency exchange activities and related financial services have been classified as illegal financial activities, and payment institutions have been required to prevent cryptocurrency-related transactions. In February 2026, the People's Bank of China and eight other institutions announced a revised version of cryptocurrency regulations, strengthening regulations on cryptocurrency transactions and exchanges with fiat currencies.

Under such regulations, even if peer-to-peer RMB transfers are technically possible, it does not imply approval from payment service providers for cryptocurrency transactions. Alipay's recent statement clarifies the distinction between the payment methods offered by Peer and the services officially authorized by the company.

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