China's fourth-party payments 'fall' in India www.deekpay.com

## Indian police nab Chinese national for alleged online gambling, transactions to the tune of Rs 11 billion! Recently, the Indian police in Hyderabad arrested a Chinese national and three Indian employees for alleged online gambling with transactions totalling up to Rs. 11 billion. The case involves several Chinese payment companies including Doky Pay, Linkyun, Spotpay and others. It is learnt that these companies are controlled through a company called "Beijing T Power Company", and the technical operations are handled entirely by Chinese directors or partners. The arrested Chinese citizen, named Yan Hao, is the co-founder of Doky Pay and also the head of business in Southeast Asia. Police said the case involved a "colour prediction" game in which players bet on colours to participate in online gambling. The game uses Telegram as a communication platform, and players can only be introduced to the group by others, while veteran players who introduce new members can earn a commission. Police have frozen Rs 300 million in the accounts involved, and said most of the transactions took place in 2020. The case has attracted widespread attention and triggered a massive investigation into Chinese payment companies in India. India's central bank and tax authorities have started investigating all Chinese companies that do business with Indian payment companies. In addition, Indian police are investigating other cybercrime activities related to the companies involved in the case, including phishing and running banned applications. Doky Pay has denied the allegations and said it has prepared a paper trail, which it will mediate through its lawyers. An employee of Doky Pay, surnamed Yang, said the real company involved was the one that provided real money gaming services, while Doky Pay was only providing payment services, and the Indian police were "looking for a scapegoat". The case has also cast a shadow over China-India economic and trade relations. The Indian market has very strict compliance requirements for payment companies, and many Chinese companies may not be strictly fulfilling KYC (Know Your Customer) requirements, which leads to increased risks for their operations in India. As India conducts stricter scrutiny of Chinese payment companies, Chinese companies will face greater challenges in operating in India in the future. How to operate in compliance has become a key issue that Chinese companies must face in their development in India.