Alibaba’s Ant Financial Continues To Closely Monitor Crypto OTC Trading
Amid Chinese government’s renewed effort to crack down on cryptocurrency tradings, the third-party payment vendors such as Alibaba’s Alipay and Tencent’s WeChat Pay are required to continue to scrutinize and halt accounts that are suspected of handling cryptocurrency transactions.
Ant Financial, Alibaba’s electronic payment affiliate that runs the payments service Alipay, told Beijing News on Friday that Alipay will suspend crypto-related fund transfers and even permanently restrict payment collection functions of accounts that are involved.
“ Alipay and Ant Financial has been and will continue to closely monitor over-the-counter trading activities and we will take appropriate measures if some transactions that we suspect are related to virtual currencies. We will also establish an inspection system to monitor key websites and accounts.” Ant Financial’s representative said.
Wechat Pay, another popular digital payments platform in China, also take the similar measures.
Eric Jing, CEO OF Ant Financial said publicly in March that although his company owned the largest number of the world’s most blockchain patent, none of them is related to ICO. He also made critical comments on cryptocurrency and ICOs, saying that ICO projects and “air coins” would bring huge risks to investors.
Alibaba founder Jack Ma is also a cryptocurrency skeptic. He said in Chongqing yesterday that “ I personally don’t support Bitcoin, but I believe blockchain is the best technology for data security and data privacy. Blockchain is not just about bitcoin.”
In addition, China’s five ministries and commissions, including China Banking and Insurance Regulatory Commission, Office of the Central Leading Group for Cyberspace Affairs, the Ministry of Public Security, the People’s Bank of China (PBOC) and State Administration of Market Regulation issue a joint statement today, warning the public against the risks of investing in cryptocurrencies. The statement mentioned that “ recently, some criminals seek to infringe on the legitimate rights of investors by issuing the so-called digital assets. They attract retail investors into fraudulent schemes under the moniker of ‘ financial financial innovation’ and ‘blockchain’. ” The authorities urge the public to report suspicious activities.