Ant Financial, the payment affiliate of e-commerce giant, is collaborating with Chinese regulators to scrutinize peer-to-peer digital currency trading using its Alipay mobile app.
A media outlet administrated by the Communist Party reported on Friday Ant Financial is now increasing efforts to monitor both customer and merchant accounts as well as notable sites that integrate the Alipay gateway to facilitate over-the-counter (OTC) cryptocurrency trading.
A representative of Ant Financial told that “Alipay adheres to the principle of not providing services for crypto transactions,” continuing:
The representative stated:
“We have been and will continue to observe over-the-counter (OTC) trading activities closely. If we find any transactions that we suspect are related to digital currencies, we take proper measures including, but not restricted to the suspension of related fund transfers and permanently restricting payment collection functions of accounts involved.”
Although, the company didn’t offer details on whether or how many accounts it had already found with cryptocurrency trading involvement.
The news follows yesterday’s report that Chinese financial regulators are now trying to obstruct the internet access to over 100 overseas digital currency trading platforms that are still giving services to Chinese investors.
Another prominent mobile payment application WeChat Pay, started by internet giant Tencent, has also been monitoring and blocking accounts that are suspected of managing cryptocurrency transaction.
Following the ban in September 2017 from People’s Bank of China on cryptocurrency trading and initial coin offering (ICO), major Chinese exchanges all shifted their businesses overseas but continued to offer crypto-to-fiat over-the-counter trading.
Alipay, WeChat Pay, and bank transfer have since been accepted as ways for Chinese residents to buy crypto assets.