Alipay Crypto Ban: What It Means for China's Digital Finance

When Alipay crypto ban, the 2021 decision by Alibaba’s payment platform to block all cryptocurrency transactions. Also known as China’s crypto payment prohibition, it wasn’t just a policy change—it was a signal that the state was shutting the door on private digital money in favor of its own system. This wasn’t an isolated move. It came right after the People’s Bank of China (PBOC) declared all crypto trading and mining illegal, turning China into the world’s strictest crypto environment. The goal? Replace Bitcoin and Ethereum with the digital yuan, the official central bank digital currency (CBDC) controlled entirely by the Chinese government. Unlike decentralized crypto, the digital yuan lets authorities track every transaction, freeze accounts, and cut off access in real time.

What most people don’t realize is that the ban didn’t kill crypto use—it pushed it underground. In 2022 and 2023, Chinese traders moved over $86 billion in crypto despite the risks. They used peer-to-peer platforms, offshore exchanges, and even cash trades. Meanwhile, the PBOC crypto policy, the coordinated national strategy to eliminate private digital currencies and enforce digital yuan adoption. became more aggressive. Authorities started seizing wallets, fining exchanges, and arresting people who helped others bypass the rules. By June 2025, owning or trading crypto became outright illegal, with no gray area left. The government didn’t just ban transactions—they banned the idea that money could exist outside their control.

The Alipay crypto ban wasn’t about stopping fraud or protecting consumers. It was about power. Alipay and WeChat Pay handle over 80% of China’s digital payments. By cutting crypto out, the state ensured that every yuan spent, saved, or sent went through its surveillance network. The digital yuan isn’t just a new payment tool—it’s a control mechanism. And while global markets still talk about Bitcoin and DeFi, inside China, the conversation has shifted entirely. People aren’t asking how to buy crypto anymore. They’re asking how to stay under the radar, how to protect their assets, and whether the digital yuan is truly safer—or just more watched.

Below, you’ll find real reports on how Chinese traders still move crypto, what the government is doing to catch them, and how the digital yuan is reshaping the entire financial landscape. No theory. No speculation. Just what’s happening on the ground.