View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 4, 2016updated 04 Apr 2017 4:00pm

Regulations for online payment platforms tightened in China

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.

By Verdict Staff

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.

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.

 

 

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Electronic Payments International