On 17 December 2023, the State Council of the People's Republic of China (the "PRC")^[1]promulgated the Regulations on the Supervision and Administration of Non-Bank Payment Institutions (the "Regulations").

The official release of the Regulations marks the finalization of nearly two years of discussions and revisions of the Regulations on the Non-Bank Payment Institutions (Draft for Comment) (the "Draft") which was proposed by the People's Bank of China (the "PBOC") on 20 January 2021, and signifies the evolution of the regulatory framework for the PRC's non-bank payment sector. The new regulatory framework is built on the regulatory experiences of the past thirteen years, aligning more closely with current regulatory needs, market dynamics, and product developments. The Regulations play a crucial guiding role in facilitating the sound and healthy development of the non-bank payment sector.