Alipay has denied authorizing cryptocurrency purchases through third-party platforms after marketplace Peer said users could exchange USD Coin using yuan transfers through the payment app. The Alipay crypto trading clarification, issued on October 28, 2026, warned of potential risks to users’ funds and payment accounts.

Key Takeaways

  • Peer said it has no formal partnership or technical integration with Alipay.
  • Peer reported 107 completed trades involving 45 buyers and approximately $7,094 in volume; Alipay has not independently verified the figures.
  • Alipay has not announced whether it has restricted specific accounts or disabled Peer’s payment option.

What prompted the Alipay crypto trading clarification

Peer announced its beta service on October 27, saying it supported yuan transfers through Alipay for peer-to-peer USDC transactions. Alipay responded that it had not authorized cryptocurrency purchases through outside platforms. Peer subsequently said it had no formal partnership or technical integration with the payment provider.

The distinction is between individuals using a payment app to transfer money and the payment provider authorizing a cryptocurrency trading service.

How Peer says its service works

Peer says sellers deposit USDC, a dollar-pegged cryptocurrency, into a smart contract on the Base network. Buyers then send yuan directly to sellers using Alipay. Once payment is confirmed, the escrow contract releases USDC to the buyer’s cryptocurrency wallet.

Peer said the payment arrangement had operated since August 21, before the beta announcement. It reported 107 completed transactions involving 45 buyers and approximately $7,094 in total trading volume. Its documentation describes a maximum service fee of 0.95%, with possible additional charges for cross-chain transfers.

China’s payment restrictions

A February 2026 notice from Chinese authorities prohibits financial institutions, including non-bank payment providers, from providing account opening, fund transfers or clearing and settlement services for virtual-currency business activities. The notice also prohibits domestic fiat-to-virtual-currency exchange business. Those restrictions are set out in the February virtual-currency notice.

The notice provides regulatory context, but it does not establish whether any action has been taken against Peer. Alipay has not confirmed new enforcement measures specifically targeting the platform.

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