Chinese Regulators Hit Didi’s Payments Arm with Major Fine

The payments division of ride-sharing and food delivery firm Didi was hit with 4.27 million yuan ($632,170) in fines on Friday (July 15) by the People’s Bank of China, Reuters reported, citing a notice from the central bank.

Didi’s payments division was fined for 12 violations concerning requirements for transactions regarding traceability and authenticity, opening accounts for financial firms and neglecting to promptly communicate important risk events, Reuters reported. The violations came as Didi was working to satisfy regulators.

See also: Didi Moves Closer to NYSE Delisting

Didi ran afoul of Chinese lawmakers when it pushed ahead with its $4.4 billion initial public offering (IPO) in the U.S. despite a dicey environment for tech companies in China and being told to hold off.

After going public in June 2021, the company found itself in the crosshairs of U.S. and China’s regulatory agencies over the differences in auditing standards, Reuters reported.

Related: SEC Probes Didi’s US IPO

The U.S. Securities and Exchange Commission (SEC) launched an investigation into Didi’s listing in May, PYMNTS reported. Ultimately, Didi faced numerous investigations from regulatory bodies in China, and even after delisting in May, the rideshare company is still struggling to appease lawmakers and move forward.

In an SEC filing by Didi on May 22, the company said that delisting from the NYSE was necessary for it to undergo a cybersecurity review that would enable it to resume normal operations.

Read more: Didi Will Stop Food Delivery in Japan as It Delists in US

After launching in Japan in 2020, Didi pulled out of the country in May and shareholders then voted to delist the firm from the NYSE, PYMNTS reported.

The unit in Japan reportedly suffered from a lack of support from Didi Group’s main backer Softbank, which is already an investor in Uber Japan.

Didi could not be reached for comment, Reuters reported.