China’s financial regulators ask Ant Group to control its expansion, return to its original business

China’s financial regulators have asked Ant Group, the world’s largest fintech company, to return to its original business as a payment services provider and strictly prohibit from unfair competition, in an attempt to rein in the industry and to prevent uncontrolled growth from leading to financial risks.

China’s official news agency reported on Sunday, the regulators called on Ant to rectify its key businesses during regulatory talks held on Saturday. Specifically, the operator of Alipay, one of the nation’s two largest digital payment apps, has been urged to return to its payment origin, improve trading transparency and prohibit unfair competition practices.

Ant has been asked to draw up a timetable for the rectification plan and its implementation. The People’s Bank of China’s deputy governor Pan Gongsheng said in a statement on Sunday, Ant group must return to its origins in online payments and prohibit irregular competition,protect customers’ privacy in operating its personal credit rating business,establish a financial holding company to manage its businesses, rectify any irregularities in its insurance, wealth management and credit businesses, and run its asset-backed securities business in accordance with regulations.