Beijing has called on China to start preparations for a long-anticipated pilot program to register the country’s remaining peer-to-peer (P2P) online lending platforms in a national monitoring system, said Caixin.
The new monitoring system consists of two databases: an information disclosure database and a real-time transaction monitoring database. National Internet Finance Association of China (NIFA) told qualified P2P platforms to get ready to submit information to the two databases.
The monitoring system is part of China’s response to abuses as the burgeoning online P2P phenomenon got ahead of regulators. Since 2016, the P2P industry has been the focus of a crackdown on internet financial risks after lax supervision and fraud led to a string of scandals and resulted in the collapse of hundreds of platforms, reported Caixin.
Large P2P platforms with loan balances of more than RMB 5 billion ($750 million) that have passed compliance inspection must be registered with the information disclosure database by the end of May, according to requirements by the Office of the Special Rectification Work Leadership Team for Internet Financial Risks along with the P2P Internet Lending Risk Specialist Rectification Team.