China endorses plan to strengthen FinTech regulations

President of China Xi Jinping has officially approved a plan to standardise and develop regulations for the FinTech sector, MarketWatch has reported.

A meeting by the government’s Central Commission for Comprehensively Deepening Reform remarked that the core function of FinTech platform companies should be to serve the real economy, and authorities will enhance the supervision of payment firms and their financial activities.

Xinhua – a Chinese state media platform – said that China will seek to improve regulations over the FinTech sector, make up for shortcomings in supervision and prevent systemic financial risks.

Xi Jinping also used the meeting to pledged to build a data infrastructure system and safeguard national data security.

MarketWatch noted that Bejing has taken a ‘hard stance’ on internet technology firms over the last year – with tech giant Alibaba facing the governments wrath for making hefty returns from originating loans without taking on sufficient risk.

Earlier this year, the People’s Bank of China (PBOC) revealed it was set to expand a pilot of a digital yuan across a range of new locations following the success of the initial program.

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