China’s crypto restrains are continuing. This time Alipay, a mobile payment processing service, has gone on to ban accounts that are linked to over-the-counter (OTC) Bitcoin trading.
Alipay is part of the immense Chinese Alibaba group based in Hangzhou, that is currently one of the most powerful conglomerates in the world. Reportedly the mobile payment service will as of now be prohibiting any users that deal in crypto OTC trading. In order to limit the amount of unwanted crypto activity, the company will be wary of doubtful accounts, and work on an inspection system for “key websites and accounts.”
The company the runs Aliplay, Ant Financial, perceives crypto trading a risk, thus not finding it necessary to retaliate by providing services in crypto exchange. Following this tendency, the company plans to adopt a strict policy towards accounts related to transactions and operations linked to crypto. The firm also intends to offer “risk prevention education” in an attempt to“remind users not to be deceived by various false propaganda, to recognize the risks of virtual currency transactions, and to avoid the possible losses suffered.”
WHY IS THIS IMPORTANT?
- This is another effort made by China to reduce the crypto usage, these actions indicate that they view crypto as a threat to their traditional economy.
- Nevertheless, governmental institutes have backed and supported blockchain technology which might lead to a change in the overall attitude of the legal system in China.