To help control fraud in online lending platforms, China's authorities plan to tighten internet finance industry regulations. China's online peer-to-peer (P2P) industry is unregulated and has been subject to fraudulent activity in recent years, with 1,200 P2P firms currently operating that are reportedly in trouble. The new regulations will require all companies offering loans or credit cards on the Chinese market to register as financial institutions under a single set of rules for their entire industry.
To help control fraud in online lending platforms, China's authorities plan to tighten internet finance industry regulations. China's online peer-to-peer (P2P) industry is unregulated and has been subject to fraudulent activity in recent years, with 1,200 P2P firms currently operating that are reportedly in trouble. Authorities plan to work with bank regulators to help set up warning systems to alert them to financial risks and help make it easier for the sharing of information between regions and departments.