Enforcement against technology companies that engage in anti-competitive practices will remain an enforcement focus of the People’s Bank of China (PBoC), central bank governor Yi Gang said at the Regulating Big Tech conference hosted by the Bank for International Settlements (BIS).
The conference brought together central bank governors, senior policymakers, researchers and other stakeholders for a series of discussions on how regulations can be used to help FinTech companies operate in the best interest of the public.
See also: Wide-Ranging Chinese Corporate Crackdown May Grow Ever Wider
“We will continue to cooperate with anti-monopoly authorities to curb monopolies and actively deal with algorithm discrimination and other new forms of anti-competition behavior,” Yi said during a keynote speech.
Yi also said that the PBoC will continue to maintain enforcement efforts of the payments space and is requiring that all financial services firms — even those companies in the personal information sector — obtain licenses.
China’s central bank has mandated that technology companies dealing in financial services separate the functions with a subsidiary. The PBoC is now planning to ask that the holding companies consolidate balance sheets.
Read more: Another Chinese Regulator Cracks Competition Whip At Big Tech
The banking authority has also asked tech platforms to sever the connection between personal credit services and financial institutions by extending credit information services to finance firms via licensed agencies, Yi said.
Yi pointed to three principles that will guide the regulatory direction of FinTech — licensing, firewalls between different business segments, and severing the link between non-banks and banking information.
This is the latest in a series of moves by China to bring big tech companies in line with tighter restrictions, requirements and oversight. The country’s watchdogs first went after Jack Ma’s Ant Group, throwing a legal wrench in its plans for a mega initial public offering (IPO).
Chinese regulations have since gone after Didi just after its U.S. IPO, situating onsite enforcers at its corporate headquarters. Antitrust investigations were also launched against eCommerce giant Alibaba Group and food delivery firm Meituan.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More