Central bank targets illegal currency trading platforms

(MENAFN- Asia Times) The Jinan Branch of the People's Bank of China has released a list of 40 online platforms suspected of conducting illegal currency trading. Non-bank payment institutions have been ordered to immediately stop providing digital payment solutions to these platforms, reported.

According to the China Internet Finance Association, local or foreign institutions who set up online platforms, including websites and apps without Chinese financial regulators' approval to serve domestic customers with currency, precious metals, futures or index trading, are considered to be illegal.

Regulators think such platforms could turn into a 'Ponzi scheme' due to the uncertainty about earnings. Some of the platforms develop offline in the name of 'mutual financial management aid,' and attract new investors by promising them rebates based on different levels.

Since July of this year, more than 200 of such currency trading platforms have been shut down.

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