CHINA has approved new regulations on nonbank payment institutions, seeking to curb risks in the booming sector by tightening supervision over digital payment service providers including Alipay and WeChat Pay, reports Caixin.
The regulations on the supervision and administration of nonbank payment institutions, which were approved by the State Council in November, will come into effect on May 1, a government announcement shows. A draft version of these regulations was released in January 2021 for public comment.
The new rules seek to address the burgeoning growth of major players in China's digital
payment industry while strengthening blanket oversight for the entire sector, which has boomed over the past decade.
Payment service providers Alipay and WeChat Pay became digital behemoths and integral to most Chinese people's lives as regulatory oversight lagged behind. China has 186 nonbank payment institutions, central bank data show.
