Amid fierce efforts to control its fintech ecosystem, China has announced some new rules that must apply to leaders and presidents Technology company in its field. This could affect Ant Group, the giant Jack Ma created that has been in the spotlight for months.
Indeed, the country’s regulators had has suspended the IPO of the Ant GroupStill, it was $ 34.5 billion on November 3, amid concerns that the company posed a systemic risk to the financial system. Structural changes were then imposed on it, such as the obligation to consolidate its financial activities under a holding company, to allow the government easier access to control its affairs, and to subject the group to stricter risk management rules. But the company that caused so much talk would by no means be the only one affected: Tencent, led by Pony Ma, must also comply with the central bank’s new rules. The company is also under strict control by the Chinese regulatory authorities.
Originally proposed by the People’s Bank of China (BPC) in September, the new regulations aim to do this Make large groups subject to rules similar to banks. Here we can guess China’s hidden intent to regulate fintech in order to prepare the ground for its new digital currency, the digital yuan (DCEP). Alipay, a service affiliated with Ant Group, is widely used by the population to drain the capital flowing through its channels and to prevent the Chinese administration from pursuing its financial oversight goals.
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Under the new rules, some criteria apply directly to managers. These should at least have eight years of experience in the financial sectorand will not be able to remain at the head of an empire indefinitely. They should apply from 1st of Mayand are intended to “standardize the operations of financial holding companies and prevent operational risks,” said the BPC. What is emerging is the country’s desire to regain control of a payments ecosystem dominated by private corporations too powerful and influential in the eyes of the state, and their hope that the DCEP will end the current dominance of the US dollars in international trade can sign and disrupt the global payments market, no longer hiding.