Global fintech and funding innovation ecosystem

End of China’s Fintech Crackdown Could Revive Investor Confidence

Techcrunch | Rita Liao | Jul 7, 2023

Fined - End of China's Fintech Crackdown Could Revive Investor Confidence

The Chinese government's regulatory crackdown on the fintech industry, which began in late 2020, appears to be concluding with substantial fines levied on Tencent and Alibaba, the two dominant players in China's digital payments market.

  • Tencent and its payments subsidiary Tenpay have been fined approximately $410 million, while Ant Group, Alibaba's fintech affiliate, faces a fine of around $1 billion for a variety of illegal activities.
    • This crackdown signals and end to China's broader initiative to control the growing power of its tech sector and increase regulatory oversight in rapidly developing fields.
    • The clampdown has led to significant changes in the industry, including the cancellation of Ant's initial public offering in 2020, which would have been the largest in history, and a major restructuring of Ant that has significantly reduced its influence on consumer finance.
    • The conclusion of the crackdown could potentially restore confidence in the fintech industry among investors and businesses, which has been shaken over the past three years due to regulatory actions. The end of the corrective phase could stimulate the industry and rekindle investment interest.
    • Tencent and Alibaba, will need to adapt to a new regulatory environment that treats them more like traditional financial services. This could impact their business models and strategies moving forward.

See:  Tencent’s Finally Marching into Web3

  • The fines and regulatory scrutiny signal a shift in China's approach to fintech, moving from a period of intense correction to a phase of "business-as-usual supervision."

View more --> here


NCFA Jan 2018 resize - End of China's Fintech Crackdown Could Revive Investor ConfidenceThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - End of China's Fintech Crackdown Could Revive Investor ConfidenceFF Logo 400 v3 - End of China's Fintech Crackdown Could Revive Investor Confidencecommunity social impact - End of China's Fintech Crackdown Could Revive Investor Confidence

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - End of China's Fintech Crackdown Could Revive Investor Confidence




 

Leave a Reply

Your email address will not be published. Required fields are marked *

six − 5 =