People’s Bank of China (PBOC) said on Monday that it would tighten the
regulations on non-banking online payment platforms, to curb risks like
financial fraud and money laundering.
The PBOC has asked users of such services to open online payment
accounts with their real names and has imposed a cap on maximum yearly
payments through such platforms at 200,000 yuan ($30,910). The new
regulation will take effect since July 1, 2016.
The regulator said that non-banking online payment platforms cannot
directly provide financial services like lending, securities investment
"The basic function of these platforms is to facilitate the development
of e-commerce", said Xie Zhong, director of the PBOC payment and
The country’s Internet giants Alibaba and Tencent, which have online
payment services, both issued statements on Monday that they support the
new PBOC rules as it will ensure the safety of users’ financial assets.
According to the new policy, for example, each account on WeChat can
transfer at most 1,000 yuan through the "Lucky Money" function. If more
money needs to be transferred, the users must provide three to five ways
to verify identity, including bank accounts, driving license and social