China’s Newest FinTech Measures
Learn how China’s new draft rules could potentially affect some of the country’s top e-commerce firms and how it affects not only The City of London but the global finance industry worldwide.
If you know anything about the growing Fintech industry you will understand the appeal of foreign fintech settlement in the Pacific-Asian markets –especially China. The expanding consumer base grouped with a prosperous fiscal framework and expansion of currency transactions has caused many start-up companies to establish themselves outside of China, but this is about to change.
Following this week’s surprise draft publication of antitrust regulations from the Chinese government, the appeal of fintech prosperity in the Asian-Pacific market has shaken global investors to their core—ultimately resulting in billion-dollar losses in market value from some of the worlds largest tech companies.
While many may argue that the proposed regulations are meant to protect the competition’s integrity, much like the European Union’s newly revealed regulations for e-commerce and crypto-currency platforms, the Chinese government’s approach is entirely divergent from their previous non-intervention governance of the industry.
Although Xi Jinping and his government have released little word on why they are now deciding to implement change within the tech industry, new sources worldwide believe that recent accusations of personal data collection on Chinese citizens may be one of the leading causes behind the changes. On the other side of the spectrum, the new implementation rules could theoretically reduce compliance costs for small business operators and encourage economic health.
Nonetheless, the Chinese government’s lack of detail has left a lot of the tech industry’s top moguls wondering whether the new regulations are legit or whether they have been put in place to entice fear amongst some of the larger corporations. Nonetheless, we will have to wait and see what the Chinese government’s next moves are regarding their market integrity and implementing penalties against fintech moguls in the near future. More to come soon.