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.
#alipay is blocking accounts involved in bitcoin otc trading. pic.twitter.com/7cuATHWReq— Red Li (@redtheminer) August 24, 2018