Trump Signs Order to Ban Ma's Alipay, Other Chinese Apps

Separately, U.S. officials are reportedly considering banning U.S. citizens from investing in Alibaba Group, an affiliate of Alipay's parent.

Jan 6, 2021 at 11:47 p.m. UTC
Updated Sep 14, 2021 at 10:52 a.m. UTC

U.S. President Donald Trump signed an executive order on Tuesday banning the Alipay payment platform and seven other apps with links to China, saying the apps can access private information from their users.

Separately, U.S. officials are considering banning U.S. citizens from investing in Alibaba Group, an affiliate of Alipay's parent, and Tencent Holdings, people familiar with the matter told Dow Jones. No decision has been made while agencies debate the possible effect on the markets, the sources said.

Tuesday's executive order bans transactions using CamScanner, QQ Wallet, SHAREit, Tencent QQ, VMate, WeChat Pay, and WPS Office and Alipay, which is the payments platform owned by Chinese billionaire Jack Ma's Ant Group Co.

The crackdown comes ahead of China's launch of its central bank digital currency (CBDC), which is thought to have influenced China's own crackdown on Ant Financial and other Jack Ma companies.

In October, speaking at an event in Shanghai, Ma criticized China's financial system and its state-dominated banking sector, “We shouldn’t use the way to manage a train station to regulate an airport," said Ma, "We cannot regulate the future with yesterday’s means.”

Since making the comments Ma has been keeping a low profile and his Ant Group initial public offering has been suspended by regulators.

Industry watchers have said the People’s Bank of China is using the digital yuan as part of a broader effort to curb the growth of Alipay and WeChat Pay.

The launch of a CBDC is also expected to stunt Alipay’s micro-lending business and provide the unbanked with financial services, while also drawing back deposits for commercial banks.

China has been accelerating its efforts on the CBDC front and appears to be well ahead of the U.S. in developing a digital currency, according to analysts. 

By going after Ant now and banning Alipay, the U.S. could be inadvertently helping the Chinese government progress with its digital currency revolution as people are left with no choice but to adopt its payments system. The justification for the order is also curious, given that all kinds of apps in the U.S. and elsewhere, whether financial or otherwise, have the power to access people's private information.

The executive order goes into effect in 45 days and states that the apps are forbidden because they pose a threat to U.S. national security.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
After Armstrong Tweet, India's Crypto Policy Body Says No Contempt of Court Challenge vs. RBI

The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

CoinDesk - Unknown
2
CoinDesk - Unknown
Portuguese Congress Rejects Two Bills Seeking to Tax Crypto

The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn’t submitted a proposal so far.

The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn’t submitted a proposal so far.

CoinDesk - Unknown
3
CoinDesk - Unknown
First Mover Asia: Regulatory Attention on Terra Could Change South Korean Trading Environment; Bitcoin Goes Sideways

The founders of two prominent crypto-related organizations said tightened restrictions could make it difficult for foreign tokens to list on Korean exchanges, discouraging projects from trying.

The founders of two prominent crypto-related organizations said tightened restrictions could make it difficult for foreign tokens to list on Korean exchanges, discouraging projects from trying.

CoinDesk - Unknown
4
CoinDesk - Unknown
A16z Doubles Down on Crypto Investments Despite Market Downturn, and NFL Launches Play-to-Earn NFT Game

The most valuable crypto stories for Wednesday, May 25, 2022.

The most valuable crypto stories for Wednesday, May 25, 2022.

CoinDesk - Unknown