Alipay Embarrassed Binance as it Reiterates Crypto Ban

Mobile payment giant Alipay has refuted Binance’s claims of being able to use them on their website whilst reiterating their ban on cryptocurrency/Bitcoin transactions.

After Binance announced they would be accepting payment for Alipay and Wechat on October 8th. Changoeng Zhao, confirmed this on Twitter after a user asked if they can use Wechat and Alipay on Binance. He replied with just a yes.

Alipay, whose parent company is Alibaba, sent shockwaves through the industry with a string response, saying, “NO, you cannot.”

https://twitter.com/Alipay/status/1182244458730901504

After this they put a link to their main tweet on the issue, which said:

“There’re several reports about @Alipay being used for bitcoin transactions. To reiterate, Alipay closely monitors over-the-counter transactions to identify irregular behavior, and ensure compliance with relevant regulations. If any transactions are identified as being related to bitcoin or other virtual currencies, @Alipay immediately stops the relevant payment services.”

It was not just Alipay who responded. Wechat, according to Dovey Wan. also hit back at Binance:

“wechat pay also followed up with an announcement to reassure “wechat will never support cryptocurrencies trading, and has never integrated with any crypto merchant

And it says “we welcome any whistle blower to report such behavior””

Changpeng Zhao, who is from China, had put some clarity on the situation. He claimed that Wechat and Alipay weren’t working with the two mobile payment giants. Instead of buying cryptocurrency like Bitcoins, you can only do peer to peer transactions. 

According to Dovey Wan, the police are upping the pressure on over the counter trading (OTC). Her tweet said:

“Alipay officially reaffirmed its “Prohibition of cryptocurrency OTC trading” on its Weibo today (auto translation below) 

Starting from Aug, China OTC market has been slowing down quite a bit due to various actions taken by both payment channels and local police.”

https://twitter.com/DoveyWan/status/1182253437120991232?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1182253437120991232&ref_url=https%3A%2F%2Fwww.newsbtc.com%2F2019%2F10%2F10%2Falipay-refutes-binance-fiat-crypto-on-ramp-will-stop-bitcoin-transactions%2F

The public and others had believed that China was becoming more open after the announcement of a cryptocurrency from the People’s Bank of China (PBoC). However, its release is not imminent and clearly the authorities are not any more lax. 

Despite this, Binance on its peer to peer network for Bitcoin (BTC), Ether (ETH) and Tether (USDT)  has put it alongside the Chinese yuan (CNY). This gives a crypto starved public of China another way into the industry, but whether this actually comes to fruition and not subject to strict control i unclear. The Alipay response would suggest that the Binance move is unlikely to be successful. 

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