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7.8billion Bank Accounts Affected by China’s New Regulation, Alipay May Suffer Most
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Starting from 1st December 2016, 7.8 billion bank accounts will be impacted by China’s new regulation, a great setback for the biggest internet payment processor in China, Alipay.
The regulation policy was distributed by People’s Bank of China as an “urgent” document on 25th November as per Caijing, only one week from being implemented.
There are 7.786 billion bank accounts in total or 5.69 on average for individuals in China as of June 2016. As stipulated by the new rules, an individual can only have one Type-I account with a particular bank. For those who already have a Type-I account with a bank, they can only open Type-II or Type-III accounts with that bank.
Users need to designate Type-I account for large amount of transactions if they have multiple accounts in one bank. A Type-I bank account has all the functions of a bank account including allowing the holder to make payments, deposits, transfers and investments. There is no restriction on the amount that can be held in the Type-I account.
But you can only use it via traditional banking system.
What are the limits for Type-II and Type-III accounts? The question could be better interpreted by infograph made by CCTV:
Functions and limits of 3 types of bank account
The balance of Type III account is restricted to less than 1,000 RMB and the daily and annual transaction cap is 5,000 and 100,000. Type II account sits somewhere between the “No limits” and the 1,000 RMB threshold.
Alipay, the biggest online payment processor in China, finally released a public statement in zero hours today after days of silence. The statement is titled To crack telecom scam and secure the safety of user money, which specifies:
- One individual can only use one Type-III account on Alipay. Various accounts that are registered with one particular mobile number will be cleaned up if they are not properly justified.
- A new Alipay account that has no transaction in 6 months might be suspended and verification is needed to reactivate.
- Number of daily transaction is limited to 100 times.
In the first half of 2016, 455 million users conducted 62.644 billion transactions online in China. As the biggest online payment processor, Alipay may lose huge potions of market share due to such limits. Bitcoin is considered a potential competitor with Alipay or other online payment processors in micropayments. It’s hard to assess the impact so far.
62.644 billion transactions conducted during the first half of 2016 in China. source:qianzhan
Samson Mow, COO of BTCC, expressed his concern, he said it’s horrible：
Making spending and moving money very cumbersome.
Another important change to the money transfer via ATM is that the sender may choose settlement 24 hours after sending, or T+1 transaction.
Not long ago, the joint bankcards of China Unionpay and international payment processors are banned, which will come into effect on 1st Jan 2017.
We are seeing lots of changes from the traditional banking system. Some of which may be helpful in terms of curbing financial frauds and protecting money security. However the account categorization policy is clearly in favor of the traditional banking system.
Learn cryptocurrency and digital assets since 2013 and co-founder of 8btc in 2014. Co-author of 2014-2015 Digital Currency Development Report(2015) and first author of Investment Guidelines To Blockchain Digital Currency (Published in June 2017 ISBN:9787300239286).
COMMENTS(17)
7.8b Bank Accounts Affected by China’s New Regulation, #Alipay May Suffer Most http://news.8btc.com/7-8b-bank-accounts-affected-by-chinas-new-regulation-alipay-may-suffer-most … #bitcoin #paymentspic.twitter.com/0kbBqt54vR
Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom
Bitcoin unaffected.
If it was affected then you would see a major jump in localbitcoin volume as we have seen has happened in Russia.
Bitcoin users not affected
https://i.supload.com/SJTTp96Mx.png
780 million, not 7.8 billion
TIL I’m Chinese.
No, the article says there are 7.8 billion Chinese bank accounts while the population of China is 1.4 billion people. That means for every one person there are about 5-6 bank accounts (7.8/1.4). The new rules state that you may now only have one unlimited bank account (Type I) per bank. If you want more bank accounts at that bank you can only have these limited ones (Type II and III).
Basically, they’re trying to make things easier to monitor by cutting down the number of unlimited bank accounts and make anonymous capital outflow more difficult in the process. Good news for Bitcoin.
Good point
Time to get free from Central Powers TM and start using decentralized limited sound money (cryptocurrencies like Bitcoin)
Wow! The shit has hit the fan!
Starting from 1st December 2016, 7.8 billion bank accounts will be impacted by Chinas new regulation, a great setback for the biggest internet payment processor in China, Alipay.The regulation policy was distributed by Peoples Bank of China as an urgent document on 25th November as per Caijing, only one week from being implemented.http://news.8btc.com/7-8b-bank-accounts-affected-by-chinas-new-regulation-alipay-may-suffer-most
Quote from: hl5460 on December 14, 2016, 05:45:06 AM
Starting from 1st December 2016, 7.8 billion bank accounts will be impacted by Chinas new regulation, a great setback for the biggest internet payment processor in China, Alipay.The regulation policy was distributed by Peoples Bank of China as an urgent document on 25th November as per Caijing, only one week from being implemented.http://news.8btc.com/7-8b-bank-accounts-affected-by-chinas-new-regulation-alipay-may-suffer-most
7.8 billions accounts for 1.5 billion people? That does sound like a lot! In any case, the government should not have any issues with multiple bank accounts (whether it is Type-I, II or II). Higher competition is good for the market.It will take some time for the effects of this new policy to become visible. I doubt if restricting the number of bank accounts is good for Bitcoin.
I wonder how this will impact people that use separate bank accounts to link to Bitcoin exchanges? It will suck for them if they have to close these account and to link everything to one account. You just have to hate banks even more, when stuff like this happens…. not that they are blamed for this, but that they are used as a vehicle to do this. { Centralization sucks }
https://www.youtube.com/watch?v=Bu5Mtvy97-4&t=0s
Quote
As stipulated by the new rules, an individual can only have one Type-I account with a particular bank. For those who already have a Type-I account with a bank, they can only open Type-II or Type-III accounts with that bank.
I didn’t get what is the problem if you can open a type I account in another bank since it isn’t specified in the law? You don’t have the right to open a type I in the same bank only, no? Bitcoin is implemented in this article as a competitor of Alipay… Well if Alibaba adopt bitcoin we will see a huge boost in the price and in the transactions otherwise I don’t see a link in this article. Am I wrong?
Quote from: snipie on December 14, 2016, 10:55:22 PM
Quote
As stipulated by the new rules, an individual can only have one Type-I account with a particular bank. For those who already have a Type-I account with a bank, they can only open Type-II or Type-III accounts with that bank.
I didn’t get what is the problem if you can open a type I account in another bank since it isn’t specified in the law? You don’t have the right to open a type I in the same bank only, no? Bitcoin is implemented in this article as a competitor of Alipay… Well if Alibaba adopt bitcoin we will see a huge boost in the price and in the transactions otherwise I don’t see a link in this article. Am I wrong?
Alipay is considered a TYPE-III account.
Quote from: Kprawn on December 14, 2016, 07:25:47 PM
I wonder how this will impact people that use separate bank accounts to link to Bitcoin exchanges? It will suck for them if they have to close these account and to link everything to one account. You just have to hate banks even more, when stuff like this happens…. not that they are blamed for this, but that they are used as a vehicle to do this. { Centralization sucks }
Even the bank don’t know what to do at the moment, but the new rules will have its way gradually.
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