China lays out ‘rectification’ plan for Jack Ma’s fintech empire Ant – TechCrunch

What a tornado vacation for Jack Ma and his Fintech Empire. The People’s Bank of China, the country’s central bank, called Ant Group for regulatory negotiations on 26 December, announcing a comprehensive plan for the fintech firm to “rectify” its regulatory violations.

The meeting came less than two months after the sudden arrival of Chinese financial officials Stopped AN could have been an early-setting initial public offering on the firm’s regulatory compliance issues. The company, which started as a payment processor for Alibaba’s online marketplace and came out in 2011, lacked a sound governance structure, disregarding regulatory requirements, illegally engaged in arbitration, of its market advantage. Used competitors excluded and hurt consumer rights. said Central bank.

Concurrently, Jack Ma’s e-commerce giant is Alibaba under investigation By China’s top market regulator over alleged monopolistic behavior.

The banking authority laid out a five-point compliance agenda for Ant, controlled by Alibaba billionaire founder Jack Ma. Fintech company should return to its roots in payments and bring more transparency in transactions; Obtain the necessary licenses for your credit businesses and protect user data privacy; Establish a financial holding company and ensure that it has sufficient capital; Modify your credit, insurance, money management and other financial businesses according to the law; And increase compliance for your securities business.

After the closed door meeting, Ant said It has established an internal “reform workforce” to work on all regulatory requirements.

It may take months for the shakeup to be taken out and possible Dental ant evaluation, Which at the time was over $ 300 billion that was scheduled to go public. For example, the government has recently announced plans Raise level For third-party technology platforms such as Ant to provide loans to consumers, a segment that Made up about 35% Ant’s annual income. The proposed change, which is part of Beijing’s effort to control the country’s debt risks, also sets a new requirement for online microleaders to provide at least 30% of the funds jointly with banks, which Ant. Can put pressure on cash flow.

Some people are optimistic about Ant’s future. “[Ant] Creates a lot of value. If you consider for a long time, the temporary suspension of its IPO has limited impact on its business, ”said Bill Deng, founder of the cross-border payment operator XTransfer And a former executive at Ant, asked for TechCrunch.

“From the regulator’s perspective, [Ant’s] The lending size is becoming so large that it has expanded beyond the old regulatory perimeter. To some extent, it has also transgressed the main interests of traditional financial players.

Ant’s domination is no doubt a warning to the rest of the industry. In a surprise move, JD.com’s fintech unit, challenging the ant, Formerly appointed Chief Compliance Officer To run the fintech firm as the new Chief Executive Officer.

Tencent is also a Fintech business spreadBut it may not get the same level of scrutiny as social and gaming giant “Fintech Push” as “not nearly as aggressive” as Ant, said a partner in Tencent’s overseas fintech business Said who is not named.