Alipay disowns Peer’s yuan-to-USDC beta, warns users its network is not approved for crypto

Alipay says it never authorized crypto purchases through its network, one day after marketplace Peer promoted a beta service for buying USDC with Chinese yuan.

The payments giant warned customers on October 28 to protect their money and accounts, calling claims of Alipay-enabled crypto trading “false and unauthorized.”

Alipay crypto ban challenges Peer’s payment claims

Peer announced the beta feature on October 27, directing users to its Chinese-language account for instructions and customer support. The marketplace presented the arrangement as a way to buy and sell USDC through ordinary peer-to-peer yuan transfers.

Alipay rejected any suggestion that this represented an authorized cryptocurrency service.

“Claims that Alipay enables crypto purchases on third-party platforms are false and unauthorized,” the payments company said in its October 28 statement.

The Alipay crypto ban applies to the use of its payment network for cryptocurrency-related activity, even where Alipay itself does not issue tokens or operate an exchange.

Under Peer’s described arrangement, the yuan payment moves directly from a buyer to a seller. The cryptocurrency transfer takes place separately through Peer’s settlement system once payment has been confirmed.

Peer later clarified that it had no formal partnership with Alipay, characterizing the transfers as payments initiated by individual traders. That clarification distinguishes the marketplace’s functionality from an officially supported integration, but does not resolve the conflict with Alipay’s stated prohibition.

Peer reports 107 trades during early rollout

Before the public announcement brought renewed attention to the Alipay crypto ban, Peer said its payment arrangement had been operating since August 21.

The marketplace reported 107 completed transactions involving 45 buyers, with total volume of approximately $7,094. Those figures imply an average transaction value of about $66.30, suggesting relatively small individual orders during the early rollout.

The numbers are Peer’s own account of activity. They were not independently published by Alipay and do not establish the total value of cryptocurrency-related payments passing through the payments company’s network.

Peer’s system uses onchain escrow. A seller deposits USDC into a smart contract before the trade proceeds. After the buyer’s yuan payment is verified, the contract releases the stablecoins to the buyer’s wallet.

The Alipay crypto ban concerns the fiat payment side of that process. Separating the yuan transfer from the onchain settlement does not establish that the payment provider has approved the underlying transaction.

Peer’s Chinese-language guidance explained how users could participate in the marketplace. However, instructions from a third-party platform do not constitute authorization from the company providing the payment accounts.

China’s restrictions cover fiat-to-crypto services

The Alipay crypto ban sits within mainland China’s broader restrictions on cryptocurrency trading and associated financial services.

Alipay has previously established monitoring procedures aimed at identifying unauthorized crypto-linked transfers, including activity connected to over-the-counter digital currency trading.

Chinese authorities reinforced the regulatory framework in February 2026, when the People’s Bank of China and seven other government departments issued updated restrictions. The measures classified virtual currency trading, fiat-to-crypto exchanges and related financial services as prohibited financial operations.

The notice covered Bitcoin, Ether and stablecoins, while also introducing further requirements concerning tokenized real-world assets. Authorities maintained that cryptocurrencies lack the legal status of sovereign money and cannot circulate as currency within China.

Against that background, the Alipay crypto ban reflects an existing restriction rather than permission being withdrawn from an approved Peer partnership.

In June, the central bank also outlined additional anti-money laundering measures targeting virtual currency transactions, underground banking and cross-border financial crime. The policy described coordinated investigations involving the central bank, public security authorities and other agencies.

Payment access does not establish platform approval

For users considering Peer’s service, the Alipay crypto ban highlights the difference between being technically able to send a payment and having authorization to use that payment channel for a cryptocurrency trade.

Peer has described how its marketplace separates conventional money transfers from blockchain settlement. Alipay’s response addresses whether its services may be used for that purpose at all.

The reported transactions demonstrate activity claimed by Peer during its beta period. They do not establish an official commercial relationship, regulatory approval or an exemption from Alipay’s restrictions.

The Alipay crypto ban remains the payments company’s stated position following the October 28 warning. Peer’s clarification that it has no formal partnership leaves customers with a clear distinction: the marketplace advertises the payment option, while Alipay denies authorizing cryptocurrency purchases through outside platforms.