Alibaba Payments App to Monitor Crypto Trading in China

Aug 24, 2018 at 16:01 Update Date :Aug 24, 2018 at 16:01 UTC

The payments affiliate that works with Alibaba is working in cohesion with regulatory authorities in China for monitoring peer-to-peer crypto payments using its Alipay smartphone app.

On Friday, it was reported by the government controlled communist news outlet Beijing News that the Ant Financial is making attempts to improve its capabilities to monitor customer as well as merchant accounts. In addition, they are also trying to keep tabs on the key sites that work to integrate the gateway of the Alipay app so that over-the-counter crypto trading can take place.

A representative of the Ant Financial reportedly stated that Alipay continues to not offer digital currency transaction services and is focused completely on monitoring OTC crypto trading. He added that if their servers pick up any suspicious activities in connection with crypto transactions, the company takes immediate measures to penalize the suspects and arrest the activity as quickly as possible. The measures taken include suspending fund transfers linked to the rogue account and permanently putting a stop to the payment collection facilities of the accounts implicated.

However, the company has not stated anything with regard to what it had already done with accounts found to be engaged in crypto trading, or whether any such account was identified at all. This development comes at the wake of yesterday’s news reports that financial regulators of China are trying to block off internet services to more than a hundred crypto trading platforms from abroad that continue to serve investors within China.

Another well-known mobile payments app called the WeChat Pay also monitors and blocks accounts that are allegedly involved in facilitating or conducting crypto transactions. That app was launched by the internet behemoth Tencent in China.

After China banned all forms of crypto trading and ICOs (initial coin offerings) from the People’s Bank of China in September last year, key crypto exchanges in the country had moved their bases to countries abroad while continuing to provide services for crypto-to-fiat over the counter trading.

Since then, Alipay, bank transfers and WeChat Pay have been utilized by the people of China to carry out purchases of virtual assets.

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