Alipay Denies Ties to Peer Crypto Marketplace Following USDC Beta

The dispute centers on Peer’s October 27 announcement, which invited users to settle digital asset trades through ordinary peer-to-peer transfers using Alipay’s infrastructure. Peer claimed the system had been operational since August 21, documenting 107 transactions involving 45 buyers and a total volume of approximately $7,094. Under this model, the marketplace utilizes an onchain escrow system where sellers lock USDC into a smart contract while buyers transfer fiat currency directly to the seller’s Alipay account.

Alipay issued a sharp rebuke on October 28, stating it does not authorize virtual currency transactions or related services through its network. The company warned users that any third-party platform advertising the ability to facilitate crypto purchases via its payment channels is operating without consent. Peer has since clarified that it maintains no formal partnership with the payment provider, framing the activity as user-directed transfers between individuals rather than an official integration.

This friction highlights the persistent regulatory tension in China, where authorities maintain a strict ban on cryptocurrency trading and fiat-to-crypto exchanges. The People’s Bank of China has repeatedly reinforced these prohibitions, classifying virtual currency activities—including those involving stablecoins—as illegal financial operations. Alipay continues to employ monitoring procedures to identify and restrict accounts linked to unauthorized digital asset trading, signaling that the company remains aligned with the central bank’s broader crackdown on crypto-related financial flows.