China’s Securities Regulator Calls for Crackdown on Fintech Ponzi Schemes

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A senior official from China’s securities regulator has called for a crack down on Ponzi schemes that don the guise of fintech innovations.

Speaking at the 9th Caixin Summit on 19 November Zhou Liang (周亮), vice-chair of the China Securities Regulatory Commission (CSRC), said financial innovation must be both actively encouraged and cautiously handled, pointing to the need for authorities to “promptly make up regulatory shortcomings and engage in specific analysis of specific problems.”

Zhou called for “striking firmly against fake innovations that are actually Ponzi schemes,” which will entail a process that “cannot be completed with a single campaign, but requires orderly resolution.”

The CSRC official said that the authorities should “provide vigorous support to the lawful and compliant use of online big data, cloud computing, artificial intelligence and other forms of fintech, as well as financial innovations that better satisfy market demand.”

 

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