China’s latest FinTech move
Learn how China’s new draft regulation can potentially affect some of the country’s leading e-commerce companies, and how this will affect not only the City of London but the global financial industry worldwide.
If you know something about the growing fintech industry, you will understand the appeal of overseas fintech settlements in the Pacific-Asian markets – especially China. The growing consumer base, coupled with a prosperous fiscal framework and the expansion of currency transactions, has resulted in many startups moving outside of China. However, this is about to change.
Following the surprise draft of the Chinese government’s antitrust release earlier this week, the appeal of fintech prosperity in the Asia-Pacific market has shaken global investors to the core – which has ultimately resulted in billions in lost market value from some of the world’s largest tech firms .
While many might argue that the proposed regulations are designed to protect the integrity of competition, much like the newly revealed European Union regulations for e-commerce and cryptocurrency platforms, the Chinese government’s approach is completely different from its previous non-intervention governance industry .
Although Xi Jinping and his government have barely released a word on why they are now choosing to make changes in the tech industry, new sources around the world believe that the recent personal data allegations against Chinese citizens may be a major driver of the changes . On the other side of the spectrum, the new enforcement rules could in theory lower compliance costs for small business owners and promote economic health.
Even so, the Chinese government’s lack of detail has led many of the tech industry’s top moguls to wonder whether the new regulations are legitimate or whether they were put in place to scare some of the bigger companies. Still, we have to wait and see what further steps the Chinese government takes in terms of its market integrity and the introduction of penalties against fintech moguls in the near future. More will follow shortly.