According to news resources in Shanghai, AloGateway has been barred from conducting certain foreign exchange transactions with the local payment systems in China. The country’s authorities have been taking several steps to strengthen its financial regulations and contingency plans to mitigate the risks posed by anomalous cross-border capital flows.
AloGateway has been operating in the Chinese market for several years and offers businesses instant access to multiple Chinese payment solutions, including China UnionPay. The company has been a pioneer in supporting all CUP-branded cards.
Eventually, in 2022, the AloGetway payment solution for b2b faced several complaints from Chinese customers and global companies, which resulted in the suspension. According to our investigations, AloGateway has been offering services to unlicensed businesses and banned sectors such as online casinos, adult content, forex, cryptocurrencies, and binary options. AloGetway’s website showed that these industries are among the ones they work with in China.
China suspends forex business for some foreign banks
Since 2015, the Chinese government has taken a number of actions against the forex industry after massive losses and complaints from the Chinese. Among the suspended services are the liquidation of spot positions for clients and other cross-border, onshore, and offshore-related activities, according to sources.
In addition, the authorities had warned banks that the central bank would move to further block arbitrage channels if they engaged in lucrative carry trade by taking advantage of various exchange rates.
Over the last few years, the PBOC ordered banks to closely examine clients’ foreign exchange transactions to prevent illegal cross-border currency arbitrage involving the offshore and onshore yuan.
AloGateway Business: Online Casino and Forex
AloGateway is one of the favorite payment gateway providers in Asia for forex brokers and the gambling industry. They specialize in China payment gateways, as well as cryptocurrency payments and, of course, Visa and Mastercard payments. According to reports and a list of clients, AloGatway operates mainly in the online casino space since they own several online gambling websites.
In less than six years, AloGateway has become one of the leading payment service providers in Asia. They accomplished this through a combination of regional and Chinese banking relationships, enabling them to offer their services globally. They have also moved swiftly to adopt the new digital technologies that gave rise to cryptocurrencies, enabling merchants to accept a variety of these new currency types while avoiding any risks associated with doing so.
Finding a suitable payment processor is difficult in any situation. Based on AloGateway’s high rate of adoption and rapid expansion, they have become a leading option for Asian merchants.
Merchants who have been searching for an easy way to accept cryptocurrencies can find an easy solution by working with AloGateway. Thanks to a partnership formed with DASH in June 2018, merchants working with AloGateway have been able to meet the crypto requirements. Accepting cryptocurrencies through AloGateway helps eliminate the required regulations and overcome the bank’s strict KYC requirements. Plus, working with cryptocurrencies is an excellent way to support the gaming industry and forex trading.
Controversial Connections: Alogateway, AximTrade, and Sherwin Quiambao Empire
Sherwin Quiambao is the owner of both Alogateway and AximTrade, according to recent findings. Sherwin Quiambao, a Canadian-Filipino businessman, has had his fair share of legal problems, including being convicted in a high-profile casino scandal. His influence, however, extends beyond the world of casinos, as he owns a vast empire of internet casinos in the Philippines.
Insiders have revealed concerning facts about AximTrade’s involvement in different schemes. Many clients have had the upsetting experience of having their accounts unexpectedly canceled and having major issues withdrawing their money. These allegations paint a troubling picture of AximTrade’s activities and client treatment.
Sherwin Quiambao’s employment of a network of shell businesses, including First GlobalTransit Inc., a Manila-based IT firm, confuses matters even more. These entities disguise the genuine nature of his economic dealings, making it difficult for authorities to unravel the extensive web of relationships.
Kelvin Tang, who represents AximTrade, has also been called out in the dispute. His role in this complicated story raises even more concerns about the company’s operations and ethics.
These disclosures serve as a sharp reminder of the importance of conducting extensive due diligence and research before participating in any financial institution or online trading platform. The scenario also highlights the importance of regulatory control in order to protect investors and clients from potential financial scams and fraudulent actions.