The rules will come into force on May 1, 2024 and will apply to all payment organizations that process payments for Chinese customers.
Depending on the availability or inability to open accounts and accept deposits, all payment organizations will be divided into two types: deposit account operators and payment processors. The issuance of prepaid cards is exempt from the new rules and will be regulated separately.
Detailed rules for the classification and supervision of different types of payment institutions will be separately determined by the People’s Bank of China.
The activities of payment organizations require a license from the People’s Bank of China. The minimum registered capital of a payment organization is 100 million yuan and must be fully paid by participants at the time of obtaining a license from their own capital; Depending on the type, territory and scale of activity, the People’s Bank of China has the right to establish an increased amount of authorized capital to obtain a license.
If fraud in the payment of the authorized capital is detected when submitting an application for a license, the applicant will be deprived of the right to re-submit the application for one year.
Foreign payment organizations providing cross-border payment services to Chinese users are required to obtain an operating license. When conducting activities without a license – a fine in the amount of 100% to 500% of illegally obtained income.
The new rules apply to all payment organizations, but for previously created ones there will be a transition period.