Jack Ma's Ant Group is fast becoming one of xo China's most powerful companies, and plans to connect the worlds of technology and finance are growing more ambitious each day.It now looks set to become a highly regulated Chinese bank it hopes to take its place.Months after the blockbuster's initial public offering was suspended at the last minute, a move that appeared to have been sparked by Ma's criticism of Chinese regulators, several media reported. Ant has agreed with the agency to be a financial holding company.Ant declined to comment on those reports earlier this month, and details of a potential deal were not immediately clear.The company did not respond to further questions about any deals with authorities this week.

But the report suggests that Alibaba affiliates may now have to follow rules similar to those of traditional Chinese banks, a move that could force a cut of inspiration to be a dominant force in the tech world.The company is best known for its digital payment app Alipay, which has more than 700 million monthly active users. It also has a strong interest in online investing, insurance and consumer lending, which has helped it grow with approximately $ 635 billion in assets under management.

While most companies have been able to grow unchecked over the past decade. But the political tide in Beijing is changing. Authorities are increasingly aware of how much influence Ant and their colleagues have on the country's financial system, for example, Ant now commands more than half of the mobile payment market in China and is looking for ways to regulate it. They

The Chinese government is working on a much heavier hand to control these apps," said Doug Fuller, an associate professor at City University of Hong Kong who studies technology development in Asia. “The goal is not to kill these apps. But one day of unrestricted growth and hopes of replacing traditional banks are over. What it means to be a bank Beijing's crackdown on technology has taken many forms in recent months. Not only did regulators force Ant Group to close their record-breaking IPO, they also launched an antitrust investigation into Alibaba (BABA), questioned executives from Tencent (TCEHY) and Pinduoduo. (PDD) and floating new rules that can govern operations at many technology companies.

While the loose ends remain, there are at least some clues as to Ant's ultimate fate. The People's Bank of China in September outlined new measures for financial holding companies requiring them to hold. "Adequate funds" to match the amount of assets they have, among other measures.If Ant is now classified as one of those companies, it could mean that it would have to significantly increase the amount of cash it holds as reserves or reduce the size of its consumer credit business.The details of Ant's reported deal have not been confirmed. But it's easy to see why these new rules might be a problem.