TLDR
- Alipay clarified it does not permit cryptocurrency transactions via external platforms.
- P2P marketplace Peer introduced a beta USDC-yuan trading service on October 27.
- The platform disclosed 107 transactions totaling approximately $7,094 from 45 participants since August 21.
- Peer acknowledged no official collaboration exists with Alipay.
- Chinese regulations prohibit crypto trading and fiat-crypto conversion services under guidelines revised in February 2026.
Chinese digital payments giant Alipay has publicly rejected claims that it facilitates cryptocurrency trading via third-party services. The clarification followed an announcement from peer-to-peer platform Peer regarding a new feature enabling USDC transactions using Chinese yuan.
Peer unveiled this functionality on October 27, stating that users could purchase USDC by sending yuan payments through Alipay, while others could convert the stablecoin back to fiat currency.
Alipay issued its response approximately 24 hours later. In an October 28 statement, the company explicitly stated it does not approve virtual currency dealings or associated services on its payment infrastructure.
How Peer’s USDC Service Works
Peer characterized the Alipay integration as an active beta program. The platform pointed users toward its Chinese-language support channels for detailed guidance and assistance.
The mechanism involves direct yuan transfers between users via Alipay. After the recipient verifies receipt of the fiat payment, Peer facilitates the USDC distribution.
The infrastructure relies on blockchain-based escrow functionality. Sellers must first lock USDC into a smart contract, which subsequently transfers the digital asset to the purchaser’s wallet once yuan payment confirmation occurs.
Alipay neither mints USDC nor operates an exchange within this framework. Nevertheless, its infrastructure would process the yuan component of every transaction.
Peer subsequently clarified that no official collaboration with Alipay exists. The company characterized the system as user-initiated payments rather than a sanctioned integration with the payments provider.
According to Peer, the service had been operational since August 21. During this period, the platform logged 107 successful transactions involving 45 participants, generating combined volume near $7,094.
This calculates to roughly $66.30 per transaction on average. These statistics originate from Peer’s disclosures and lack independent confirmation from Alipay.
China’s Rules on Crypto Payments
China has maintained stringent cryptocurrency restrictions for several years. Alipay has historically implemented surveillance systems to identify and restrict accounts engaged in over-the-counter crypto activity.
In February 2026, the People’s Bank of China partnered with seven additional regulatory bodies to release revised cryptocurrency guidelines. These regulations designated crypto trading, fiat-to-crypto conversion services, and related operations as prohibited financial conduct.
The framework encompasses Bitcoin, Ether, and stablecoins. Regulators emphasized that cryptocurrencies lack legal tender status and cannot function as circulating currency within China’s borders.
In June, the central bank introduced additional anti-money laundering protocols. These measures specifically address virtual currency transactions, illicit banking operations, and international financial crimes.
In its October 28 communication, Alipay stated, “Claims that Alipay enables crypto purchases on third-party platforms are false and unauthorized.”
The company encouraged customers to safeguard their assets and accounts. It also cautioned users about external platforms promoting cryptocurrency acquisitions through Alipay services.
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