Ant Financials have also taken the decision to create a "risk prevention education" module for its users so as 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".
At the same time, in an exclusive interview with BJ News, a local news outlet based in Beijing, Alibaba Group affiliate Ant Financial, which owns Alipay, said that depending on the situation, it will restrict or permanently ban any personal Alipay accounts that are involved in cryptocurrency transactions. Additionally, a new set of regulatory sweeps by the company will attempt to respond to sites popping up that integrate Alipay as a step in a process of OTC cryptocurrency trade.
China's central bank the People's Bank of China has made persistent efforts to regulate and clear up illegal financial activities including virtual currency trading, with a focus on payment and settlement.
Ant Financial's Alipay is the world's largest mobile and online payments platform. Once we find any suspicious crypto-related transactions, we will take appropriate measures immediately, including but not limited to: suspension of fund transfer functionality of any Alipay accounts used by companies for crypto-related transactions. The affected exchanges are still providing crypto trading services to Chinese investors.
Ant Financial, however, didn't give any details on how many accounts it has discovered so far that are involved in cryptocurrency trading.
Alipay has over 520 million users and holds over 54% of China's online payments market, but is also present in Singapore, Hong Kong, Japan, the USA and Canada, where it mainly provides payment support for Chinese shoppers who can pay with yuans. "We will also establish an inspection system to monitor key websites and accounts". Furthermore, the government body is working out the strategy to block access to 124 exchanges operating from overseas.
The People's Bank of China in September previous year placed a ban on crypto trading and initial coin offerings. Earlier it was reported that the Chinese government identified over 100 oversea crypto exchanges providing services to Chinese citizens.