Retailers across Japan have begun alerting customers that they will stop accepting WeChat Pay and Alipay, China’s two largest digital payment systems. While political friction is contributing to the growing economic separation between the two countries, the shift also reflects heightened concern over money laundering.
Chinese media outlet Vision Times also reports that several Japanese supermarkets have posted signs stating they will stop accepting the Chinese payment platforms starting February 13. The once-ubiquitous WeChat Pay signage had already noticeably declined by the end of January.
Japanese merchants initially embraced these payment systems following a surge in Chinese tourism. In fact, by 2019, more than 300,000 retailers across Japan had signed up to accept Alipay.
As Vision Times points out, relations between the two nations have since cooled. After the Japanese government warned China against military action in Taiwan last December, Beijing urged its citizens to avoid travel to Japan. According to Tripla, hotel bookings from China decreased by 57% following the announcement.
Japan’s AML Crusade
There is also a more prosaic factor at play: Japan’s tightening anti-money laundering regulations. Authorities are concerned that Chinese criminal groups have been using digital payment platforms to purchase high-value goods in Japan for resale, effectively converting yuan into yen or U.S. dollars.
This crackdown has manifested in several areas. In October, the government dismantled a ring of Chinese nationals accused of money laundering through luxury condominiums purchases. Last week, police called for harsher penalties to address the illegal trading of bank accounts under Japan’s Act on Prevention of Transfer of Criminal Proceeds.
Big Business in China
Meanwhile, money laundering has become a lucrative industry in China. In recent years, the government has made it increasingly difficult for ordinary citizens to move money out of the country, fueling a boom in illicit cross-border activity. The U.S. Treasury estimates that Chinese networks launder as much as $150 billion annually.
According to Chainalysis, Chinese-language money-laundering networks processed nearly $40 million in crypto per day in 2025. The firm estimates that these networks now launder more than 10% of the funds stolen worldwide through so-called “pig butchering” scams.
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