Client Briefing – NIFA Draws Attention to m88 casino bonus code Risks of Illegal Online Financial Trading

On November 10, 2017, China’s self-regulatory association of internet finance industry, m88 casino bonus code National Internet Finance Association of China (“NIFA”), released a risk warning on its website: m88 casino bonus code Risk Warning on Prevention of Illegal Financial Trading on Internet Platforms (“NIFA Warning”). m88 casino bonus code NIFA Warning, from m88 casino bonus code strictly legal perspective, is not a regulation. Ram88 casino bonus coder, it is a self-disciplinary document that embodies m88 casino bonus code regulators’ deliberate initiatives to regulate m88 casino bonus code behaviors of financial institutions and idea to educate ordinary investors, as well as laying out m88 casino bonus codeir view in certain grey areas.

m88 casino bonus code NIFA Warning starts off by stating that it comes in m88 casino bonus code wake of monitoring by m88 casino bonus code financial regulatory departments and NIFA. This recent monitoring has identified increasing illegal leveraged trading activities associated with diversified underlying assets across various internet platforms, exposing significant financial and social risks. We believe that m88 casino bonus code regulators have based m88 casino bonus codeir warning on m88 casino bonus code monitoring and assessment of actual risk, which shows m88 casino bonus code ‘risk-oriented’ approach of regulatory actions.

In addition, m88 casino bonus code NIFA Warning covers “leveraged trading activity associated with certain underlying assets” conducted through an “internet platform”, among which, an “internet platform” includes websites, mobile terminals or application software, and it could be an internet platform located onshore or offshore (if such an offshore internet platform allows domestic investors to participate in trading in a cross-border manner). m88 casino bonus code “leveraged trading activity associated with certain underlying assets” includes trading of foreign exchange, precious metals, futures or indices.

A long-term absence of regulation on internet finance has meant that internet platforms engaging in leveraged trading established eim88 casino bonus coder onshore or offshore (and accessible to domestic investors) have been operating in a grey area. In issuing m88 casino bonus code risk warning, m88 casino bonus code regulators have indirectly determined m88 casino bonus code legal substance of m88 casino bonus codese activities and demonstrated m88 casino bonus code underlying regulatory attitude.

First, regardless of whem88 casino bonus coder any leveraged trading is conducted on an internet platform run by an onshore institution or is provided to domestic clients via an offshore internet platform run by an overseas institution, m88 casino bonus codey shall be all deemed illegal.

Second, all internet platforms (including those incorporated outside China but targeting Chinese investors) currently engaging in leveraged trading such as foreign exchange or precious metals have been established without a legal basis for m88 casino bonus codeir presence in China and have not been approved by any Chinese financial regulatory department.

Third, m88 casino bonus code establishment of any internet platform carrying out m88 casino bonus code above trading shall be deemed illegal, hence any party to a transaction undertaken on such a platform will not be entitled to protection under m88 casino bonus code PRC law.

m88 casino bonus code NIFA Warning urges both financial institutions and payment institutions that engage in internet finance business not to provide any service for such illegal financial transactions, and urges m88 casino bonus code public to reinforce m88 casino bonus codeir self-protection awareness. With increasing regulation on m88 casino bonus code part of m88 casino bonus code Chinese government in m88 casino bonus code area of internet finance, we anticipate m88 casino bonus code regulators will decide whem88 casino bonus coder or not to take any furm88 casino bonus coder regulatory actions on m88 casino bonus code basis of m88 casino bonus codeir ongoing monitoring and assessment.