Central bank moves to regulate Internet gold sales

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Gold bars. Photo: iStock

The People’s Bank of China has released its first regulatory draft to rectify current issues with the Internet gold market, 21st Century Business Herald reported.

The new rule has raised the threshold for consignment sales of gold on the Internet. It requires that the registered capital of Internet institutions should be no less than 30 million yuan, and must be paid in monetary capital.

As well, they should equip themselves with staff who are familiar with the gold business.

The rule also clarifies the division of labor. Financial institutions that develop gold products must also be qualified as a market maker for the interbank gold inquiry market of the Shanghai Gold Exchange.

In addition, the Internet agency must remain a consignment agency and cannot provide services involving gold accounts, liquidation, settlements, transfers or multi-level agents.

Source

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