Chinese payment processor 1-pay has temporarily closed to new business as the government crackdown on gambling turns its attention to the banking sector.
The firm, widely used by egaming operators such as Victor Chandler and Betdaq, is still transacting but has stopped taking on new customers.
And it is thought to be a direct response to avoid attracting attention following an announcement by Chinese authorities it would seek to prevent banks facilitating gambling transactions.
The 1-Pay system allows Chinese citizens to make payments directly to gambling firms form their bank accounts.
It is authorised by the Chinese government, but it has been coming under increasing pressure in recent weeks.
The China Banking Regulatory Commission has issued a special circular urging all banks and financial institutions to tighten supervision of money transfers.
And Li Wei, vice director of the banking watchdog, was quoted in the Chinese media as saying he wanted to stop all Chinese banks allowing their customers to fund eGaming accounts.
"Chinese banking bodies should not install operational branches at gambling sites abroad or offer Internet-based services for any form of gambling activities," he said.
But industry sources have suggested the clampdown, which last week saw the arrests of more agents operating within China, is just a public relations exercise.
“There is a widespread belief this is just sabre rattling around Chinese new year,” one source said.
“But there is no doubt lots of people are going to lay low for a while,” he added.
Reports from the region suggest the government will only target unlicensed online operators.
source : egaming review magazine
