Alipay, the mobile payment processing service based out of Hangzhou, China has banned accounts the enables OTC cryptocurrency trading. The action comes as another hammer for Chinese crypto enthusiasts as China’s aversion to digital currencies continues to grow.
According to a report from Beijing News, on August 24th, Alipay will now be putting restrictions and outright ban accounts that are affiliated with over-the-counter (OTC) Bitcoin trading. Owned by Alibaba, one of the most influential and valuable companies in the world, Alipay, will additionally take measures to prevent future occurrences of OTC trading on the platform.
While Alipay wasn’t the most desired platform for cryptocurrency trading, crypto enthusiasts tried using it for back-alley transactions after the Chinese government banned crypto exchanges from providing service to Chinese citizens. Ant Financial, which runs Alipay, explains that they have always seen “virtual currency trading” as a large risk to their users, thus they have never included crypto exchange services on the platform.
To be sure, the firm will reportedly keep a close eye on suspicious accounts and install an inspection system for major accounts and websites. In addition, Ant Financial will create a “risk prevention education” module for its users. This is done to “remind users not to be deceived by various false propaganda, to recognize the risks of virtual currency transactions, and to avoid the possible losses suffered.”
Red Li, the co-founder of 8Btc, a popular China-based community of crypto and blockchain enthusiasts took to his official Twitter account to confirm the news to his followers.
— Red Li (@redtheminer) August 24, 2018
The Chinese government has often pronounced that they see cryptocurrencies as an evident threat to China’s traditional systems. The Alipay ban is an apparent step to ensure the ban that the government exercise over crypto trades. China’s National Fintech Risk office recently identified 124 cryptocurrency exchange platforms that were still available for Chinese citizens.
While China time and again ban overseas cryptocurrency exchanges, they still manage a way out. The governmental organizations are not just banning the aforementioned platforms but will also employ monitoring systems to ensure no foreign exchanges could sneak under China’s ‘great firewall’.
One of the world’s largest economies continues its aversion to cryptocurrencies, but maintain its inclination towards Blockchain technology, much like India. Chinese Governmental organizations openly endorse and financially supported blockchain startups that intend to overhaul China’s legacy systems.