China’s aversion to crypto continues, Alipay bans Bitcoin OTC accounts

China’s crypto crackdown continues, with the Alipay mobile payment processing service banning Bitcoin OTC accounts…..

by Manoj Sharma for CNR

On 24th August, Beijing News reported that Alipay, a payment processing service based out of Hangzhou, China will now be putting restrictions and outright banning accounts that enables OTC cryptocurrency trading. The news came as another hammer-blow to all the Chinese crypto enthusiasts.

The restriction already made buzz when the co-founder of 8Btc, a China-based community co-founded by Red Li, published a tweet on 23rd August.

Owned by one of the most influential companies in the world, Alibaba, Alipay was used by many traders in China for back-alley transactions and the like after the Chinese government banned crypto exchanges from offering any services to Chinese citizens. However, Alipay will now be putting restrictions on all the accounts that propagate over-the-counter (OTC) cryptocurrency trading. To prevent the future occurrence of OTC trading on its platform, Alipay will install an inspection system for “key websites and accounts” while keeping a close eye on suspicious accounts.

Ant Financial, which runs Alipay, has said that it has always seen digital currency trading as a huge risk to their users. Ant Financial also added that it will create a “risk prevention education” module for its users to avoid the risk of “virtual currency trading”.

This seems like another step in the Chinese government’s attempt to cut off the growth of cryptocurrencies in China, having pronounced in the past that they see digital currency as a threat to China’s traditional system. However, in contrast to Chinese authorities’ aversion towards cryptocurrencies, various governmental organisations have openly endorsed and financially supported startups on blockchain technology.

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