UPDATE 3-ByteDance's Douyin Pay investigated for alleged rule breach, Caixin reports

Douyin Pay could face fines of as much as tens of millions of yuan, Caixin said, citing an industry expert. ByteDance launched Douyin Pay to facilitate e-commerce transactions, competing with other dominant payment options in China like Alipay and WeChat Pay.

Douyin Pay, the online payment service for the Chinese version of TikTok, is under investigation for an alleged rule breach, Chinese financial media outlet Caixin said in a report on Wednesday that was later taken down from its website.

Douyin Pay is suspected of opening payment accounts for financial institutions and other entities engaged in financial businesses, a practice deemed illegal by China's central bank, Caixin reported, citing sources familiar with the matter. ByteDance, owner of Douyin, did not immediately respond to a request for comment. Caixin did not immediately reply to a question about why the story was removed.

The rule, in place since 2016, prohibits non-bank payment institutions from opening accounts for financial institutions or other entities engaged in credit, financing, wealth management, guarantees, trusts, or currency exchange businesses. Douyin Pay could face fines of as much as tens of millions of yuan, Caixin said, citing an industry expert.

ByteDance launched Douyin Pay to facilitate e-commerce transactions, competing with other dominant payment options in China like Alipay and WeChat Pay.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)