(Yicai Global) Dec. 1 -- Following the imposition of a moratorium on applications to establh online microlending businesses, regulation of cash loans now looming.> /n/n/n/n/n
A source close to a Beijing financial regulatory agency said it will not approve the filing of any peer-to-peer (P2P) platform which involves cash loans, ChinaTimes reported.
"Beijing financial regulatory departments will reject a filing if any business of a P2P platform found to violate regulations. Th certainly includes illegal cash loans, to be specific, unqualified lending, huge profits, high interest rates, etc." Beijing will shortly sue updated requirements for filings by internet lending platforms, the source added.
Nearly 2,700 cash loan platforms now operate in China, industry data shows. More than 590 P2P lending websites also conduct cash loan businesses, making up 16 percent of the total number of P2P platforms.
Unregtered businesses and platforms may not engage in non-operating internet information services, per Chinese law. "Filing a crucial step for compliance, and a platform must take th seriously to continue to et. Once the filing management system implemented, unregtered platforms are likely to be forced to exit or transform; therefore, the platforms must complete the filing under relevant laws and regulations, which the first step to success," the general manager of a P2P platform said.