The People’s Bank of China (PBOC) has tightened regulations on non-banking online payment platforms to curb risks such as financial fraud and money laundering.
The new regulations – which will take effect on 1 July 2016 – requires users to open online payment accounts with their real names. It also imposes a cap of 200,000 yuan ($30,910) a year for payments made through such platforms.
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The central bank has said that non-banking online payment platforms cannot directly provide financial services such as lending, securities investment and insurance. According to the payment and settlement director at PBOC, Xie Zhong: "The basic function of these platforms is to facilitate the development of e-commerce."
The country’s internet giants, Alibaba and Tencent – which both provide online payment services – have issued statements supporting the new rules set by PBOC, highlighting that this move will ensure the safety of their users’ financial assets.
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By GlobalData
