China’s banking regulator is working on the country’s first regulations for the peer-to-peer (P2P) loan industry, Caixin reported, citing sources with knowledge of the matter. P2P lending websites will not be regulated as financial institutions and will instead be classified as a type of private lending. Experts hope this will clear up the legal ambiguity surrounding P2P websites, including the danger that their executives can be accused of illegal fundraisers, a crime punishable by death. This means that website operators will not be required to get financial licences, but it also limits the range of their operations.
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