Derived from HashNews, the People's Bank of China (PBOC) has issued the 'Rules for the Business of the Cross-Border Interbank Payment System (CIPS).' The rules stipulate that operating institutions may open settlement accounts with the PBOC to manage CIPS settlement funds, which must be separately accounted from other funds. Direct participants enjoy corresponding rights based on their CIPS account balances, but these balances must be cleared by the end of each day. Operating institutions are prohibited from opening accounts in commercial banks to hold CIPS settlement funds to prevent fund stagnation. Direct participants may manage liquidity through their own or custodian bank accounts at the PBOC. Financial market infrastructure participants must use CIPS for fund settlement according to their transaction systems and central counterparty needs, and may not expand their service scope without authorization.
PBOC Issues New Rules for CIPS Cross-Border Payment System
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Summary
KuCoin system upgrade aligns with new PBOC rules for CIPS cross-border payments. The People's Bank of China has issued the 'Rules for the Business of the Cross-Border Interbank Payment System (CIPS).' The rules stipulate that operating institutions may open settlement accounts with the PBOC to manage CIPS settlement funds, which must be separately accounted from other funds. Direct participants enjoy corresponding rights based on their CIPS account balances, but these balances must be cleared by the end of each day. Operating institutions are prohibited from opening accounts in commercial banks to hold CIPS settlement funds to prevent fund stagnation. Direct participants may manage liquidity through their own or custodian bank accounts at the PBOC. Financial market infrastructure participants must use CIPS for fund settlement according to their transaction systems and central counterparty needs, and may not expand their service scope without authorization. KuCoin continues to support global compliance and system efficiency.
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