Financial regulators of China reported about the fine of fintech company Ant Group (Alibaba family) in the amount of 7 billion Chinese yuan ($984 million).
According to Chinese authorities, Ant Group and its subsidiaries violated the rules of corporate governance, consumer protection in financial services, participation in commercial activities of banks and insurance institutions, payments and settlement transactions, etc.
The regulator also ordered Ant Group to cease operations of its Xianghubao healthcare crowdfunding service and pay compensation to users.
According to Reuters, the fine, which was one of the largest in the history of the Internet market in China, completes several years of revision of the regulatory framework. It will allow the company to get a financial holding company license and get back to its plans for an IPO. For the broader technology sector, the fine marks a key step towards the conclusion of China's “bruising crackdown” on private enterprises, which began with the scrapping of Ant's IPO, the agency said.
The suspension of Ant's IPO in October 2020, Chinese authorities have focused on "streamlining" the development of platforms and their quality, regulated development. By now, most of the irregularities detected on financial platforms have been eliminated.
