Alibaba’s Alipay Will Scrutinize Crypto in OTC Trading

Alibaba’s Alipay Will Scrutinize Crypto in OTC Trading

China-based Alibaba Group Holdings’ payments affiliate Ant Financial’s Alipay, a mobile app, will scrutinize over the counter (OTC) trading of peer-to-peer digital currencies. The company will also cooperate with the regulators in its efforts as the country has slapped a blanket ban on any activities involving cryptocurrencies. The financial subsidiary is left with no alternative but to increase its efforts to monitor merchant, as well as, customer accounts apart from notable sites. That is because they combine the gateway to make it easy for OTC trading in cryptos.

Adheres To Principle

At the same time, Ant Financial’s spokesperson told the media that the company adheres to the principle of not offering any services to digital currency transactions, coindesk reported. That is mainly because the country slapped a ban last year when the overall digital coin market was surging at a rapid rate. China was not the only country to impose a ban as there are other countries like India and Pakistan that have also banned them from concerns of money laundering activities.

The spokesperson of Alibaba’s subsidiary indicated that the company had been closely monitoring the OTC trading activities. It would also continue its efforts to monitor them. The company clarified that if it finds any transactions to be of suspicious in nature and associated with cryptocurrencies, it would not mind in taking appropriate steps. This included even suspension of associated fund transfers. Also, it would not mind in permanently applying restrictions on payment collection function as far as the accounts involved.

At the same time, Alibaba Group’s firm has failed to provide any other details. This meant that it was silent on the number of accounts that it found to be involved with OTC trading in any of the cryptocurrencies. Interestingly, the news comes on the heels of China seeking to block access to over 100 overseas digital currency exchanges. This will mean that such overseas exchanges cannot offer any trading services to investors in China.

The authorities in China believe that these exchanges are offering services to domestic investors. China National Fintech Risk Rectification Office disclosed that it was able to identify 124 trading platforms that were still in existence in China. Their conclusion is based on overseas IP addresses of such platforms. The officials have also stepped up its efforts to monitor commercial user of virtual assets so that they could block internet access to such trading platforms.

Vigorous Monitoring

Alibaba’s Ant Financial is not the only firm to monitor. There are several others who are now monitoring the activities connected with cryptos either directly or indirectly. For instance, WeChat Pay, another mobile payment app from the staple of Tencent, is also monitoring activities of accounts and blocks them if it finds any suspicion of making transactions involving digital coins.

After China has banned in September last year, major exchanges have moved their business to overseas locations. However, they continue to provide crypto-to-fiat trading in OTC. Chinese have allegedly used bank transfer, WeChatPay, and Alipay for acquiring virtual assets.

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