It is lately rumored online that the central bank of China had interviewed the relevant persons in charge of major commercial banks, Alipay, Paypal and other financial institutions and requested them to stop the offering of payment and settlement services for virtual currency Wright credits or Bitcoin. With the shutting down of the third-party payment and settlement channels for the booming Bitcoin, it is expected that Bitcoin may be kept away from the China market or its trading or other relevant transactions in China would have to be underground.
According to the NBD news yesterday, Alipay and Paypal had confirmed the rumor and they have closed the transaction window for Bitcoin. Alipay even pointed out that all future payments transactions via Alipay accounts in relate to Bitcoin trading would be transactions between individual accounts and these transactions would not be protected by Alipay.
Reference: NBD News