China to issue guidance for light online payment solutions to preserve emerging FinTech

By Christine Duhaime | April 29th, 2015

The Government of China has announced that it is issuing legal guidance to lightly regulate online payment systems, what it terms as “internet finance.” The guidance will be prepared by the People’s Bank of Canada and will contemplate a regulatory framework for governance.

The impetus for developing guidance is driven by the explosive growth in online financial services and payments in China. Not surprisingly, China is the world’s largest peer-to-peer lending market with 1,400 peer-to-peer lending platforms that have raised $18 billion.

Interestingly, a member of the Chinese government called for light regulation to ensure that innovation in FinTech is preserved and not overly regulated, allowing companies to manage risks.

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