Premier Li Qiang recently signed a State Council order, announcing the "Regulations on the Supervision and Administration of Non Bank Payment Institutions" (hereinafter referred to as the "Regulations"), which will come into effect on May 1, 2024. The Central Committee of the Communist Party of China and the State Council attach great importance to the development and risk prevention and control of the non bank payment industry. In recent years, non bank payment institutions in China have developed rapidly, playing an important role in active transactions and thriving markets, and making positive contributions to supporting the development of the real economy and improving people's livelihoods. Develop special administrative regulations to further integrate non bank payment institutions and their business activities into the legal track for supervision, aiming to promote the standardized and healthy development of the non bank payment industry, effectively protect the legitimate rights and interests of users, and better play its role in serving the real economy and meeting the diverse payment and settlement needs of users. The Regulations consist of 6 chapters and 60 articles, with a focus on clarifying the definition and establishment permit of non bank payment institutions. Non bank payment institutions are defined as companies that transfer monetary funds based on electronic payment instructions submitted by users, except for banking and financial institutions. The establishment of non bank payment institutions shall be approved by the People's Bank of China, with clear establishment conditions and strict access control. It is clear that non bank payment institutions should aim to provide small and convenient payment services. Without approval, they shall not engage in other businesses that require approval according to law, and shall not engage in or indirectly engage in liquidation business. The second is to improve payment business rules. To meet the needs of payment business development, payment business is divided into two categories: stored value account operation and payment transaction processing, and the People's Bank of China is authorized to formulate specific rules. Clarify the requirements for payment business management, stipulate that non bank payment institutions should establish sound business management systems, possess business systems, facilities, and technologies that meet the requirements, and ensure the continuity, security, and traceability of payment business. Clear management regulations for payment accounts, reserves, payment instructions, etc. require payment accounts to be opened under the user's real name. Non bank payment institutions are not allowed to misappropriate, occupy, or borrow reserves, forge or alter payment instructions, and prevent risks in the non bank payment industry. The third is to protect the legitimate rights and interests of users. Non bank payment institutions are required to sign payment service agreements with users, and their terms should be drafted in accordance with the principle of fairness. Non bank payment institutions shall ensure the security of user funds and information, and shall not entrust related core businesses and technical services to third parties for processing; Properly preserve user information and transaction records, establish an effective due diligence system, and strengthen risk management; Take effective measures to ensure the security of payment accounts and prevent them from being used for illegal fundraising, telecommunications fraud, money laundering, gambling and other criminal activities. The fourth is to clarify regulatory responsibilities and legal responsibilities. It is stipulated that the supervision and management of non bank payment institutions should implement the Party and the state's line, policies, and decision-making arrangements, focus on serving the real economy, coordinate development and security, and maintain a fair competition order. Clarify the regulatory responsibilities, measures, and risk disposal measures of the People's Bank of China, and local governments should cooperate with the People's Bank of China to carry out risk disposal work. The Regulations also stipulate the legal liability for illegal acts. The following is the full text of the Regulations: Chapter 1, General Provisions, Article 1 of the Regulations on the Supervision and Administration of Non Bank Payment Institutions In order to standardize