Chinese Regulators Issue Joint Statement Against ‘Illegal Crypto Fundraising’

By Khushboo Chadda

BTC Wires: Alibaba’s payment affiliate Ant Financial is working together with Chinese regulator to narrow down on the peer-to-peer cryptocurrency trading through its mobile app- Alipay. As per report published on Friday by Beijing News, a media outlet administrated by the Communist Party of China, Ant Financial is making conclusive efforts to oversee customer accounts as well as merchant accounts, and even reputed websites which makes use of the Alipay gateway for making over-the-counter crypto trading. Although the company has not made it clear as to how many accounts has it tracked down that are involved with cryptocurrency trading.

In conversation with popular news platform CoinDesk, a spokesperson of Ant Financial mentioned that Alipay works in accordance with its policy of providing no services for cryptocurrency transactions. The spokesperson further added:

“We have been and will continue to closely monitor over-the-counter trading activities. If we find any transactions that we suspect are related to virtual currencies, we take appropriate measures including, but not limited to suspension of related fund transfers and permanently restricting payment collection functions of accounts involved.”

This news has come in following the report of Chinese financial regulators looking to block internet access for 100+ crypto platform that are at present endowing services to investors in China. Similar news has also come in from WeChat Pay, yet another significant mobile payment app backed by internet biggies Tencent.

Following this attitude of the Chinese government and the recent ban levied on crypto trading and ICOs by the People’s Bank of China, in the second half of 2017. However, Chinese businesses found a loophole in the system and despite shifting their business overseas, continued to offer OTC crypto-to-fiat trading as they had been so far. Their relationship with bank transfers as well as gateways like Alipay, WeChat Pay have been established ever since as methods for the Chinese to trade in cryptocurrency.

Khushboo Chadda

Khushboo Chadha is a passionate blockchain enthusiast who firmly believes in the extraordinary potential of the technology.

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