Alibaba’s embattled Ant Group has received the green light to operate a consumer finance unit, crossing a key hurdle for the online financial company to get out of its regulatory deadlock.

The group’s mammoth initial public offering in Hong Kong and Shanghai screeched to a halt last year as Chinese officials scrutinized its online lending practices. It has since taken orders to undergo a comprehensive overhaul and operate more like a traditional banking institution.

Ant has also been dealt a record US$2.8 billion antitrust fine, seen as a major blow to Chinese tycoon Jack Ma, founder of internet giant Alibaba and Ant’s effective owner.

On Thursday, the Banking and Insurance Regulatory Commission said Ant’s newly formed consumer finance unit would take over Jiebei and Huabei, two of its existing microlending businesses which were revenue engines. The company would operate under a new license in Chongqing city.

The financial watchdog also said the consumer lending business would be subject to a new scrutiny regime and had been ordered to help protect the nation’s overall financial stability, 21st Century Business Herald reported.

Ant is building a new team to rebuild its global reputation in the wake of regulatory setbacks that have sent its valuations plummeting. According to a Bloomberg report, the 10-member team will be led by senior vice president Chen Leiming and tasked with handling international government and policy matters. The team would assist in company efforts to expand its online payment systems in overseas markets, including Southeast Asia, Europe, Hong Kong and Macau, the report said.

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