Menu Close

FinTech: China’s regulator continues crackdown with Tenpay $436,000 fine

*The Shenzhen branch of the State Administration of Foreign Exchange has fined Tenpay 2.78 million Yuan ($436,000) for misconduct, including conducting foreign exchange business beyond the scope of its registration, and illegal gains

Isola Moses | ConsumerConnect

Sequel to its previous series of warnings to the operator, the Chinese foreign exchange regulator has slammed $436,000 Tenpay, a Tencent Holdings company for  violation of the Asian country’s foreign exchange (Forex) rules.

ConsumerConnect gathered the Shenzhen branch of the State Administration of Foreign Exchange (SAFE) has fined Tenpay 2.78 million Yuan ($436,000) for misconduct, including conducting foreign exchange business beyond the scope of its registration.

The Forex regulator as well gave the company a number of forewarnings, and ordered it to rectify the violations and confiscate illegal gains.

The SAFE statement said: “In response to the problems found in the routine inspection in 2019-2020, Tenpay has immediately formulated an improvement plan and implemented it item by item, and has now completed the rectification of all of them.”

The company will further strengthen compliance management under the guidance of SAFE’s Shenzhen branch, the regulator stated.

It was also learnt that China recently activated a widespread clampdown on its technology sector this year, with the competition regulator, in particular, dishing out fines and warnings and conducting investigations into the biggest names in the “platform economy”.

Recall China’s Central Bank, earlier in 2021, had ordered Jack Ma, one of the countries richest people and Co-founder of Alibaba, a multinational technology company, to reign in his Financial Technology (FinTech) business empire with a major shake-up and scale back of the Ant Group’s operations in the country.

With an even higher hand, the country’s central bank announced that all transactions of cryptocurrencies are now illegal, as September 24, banning digital tokens, such as Bitcoin and Ethereum, TheFinTechTimes report said.

This move, reportedly, has been viewed by some stakeholders as a strategy to accelerate China’s fast-developing Central Bank Digital Currency (CBDC).

Kindly Share This Story

 

Kindly share this story