We are pleased to announce that we have now entered into an escrow agreement with the Bank of Beijing who will from now on act as custodians of all the funds which go through our mobile application platform.
We are happy to report that after many months of reviews and negotiations we have found the right partner to handle all of the funds from transactions which go through our LoanChain application. This is in line with the financial regulations set out by the State Council of the Peoples Republic of China on April 2016, which were introduced in order to tighten regulation of the country’s multi-billion peer-to-peer lending sector.
This new directive was passed in order to comply with the specific rule issued by the China Banking Regulatory Commission, the Ministry of Public Security, Cyberspace Administration and the Ministry of Industry and Information Technology, that peer-to-peer platforms are not allowed to take public deposits, create asset pools or provide any form or guarantees to lenders, while having to use third-party banks as custodians for investors’ funds.
We are happy to be fully compliant with any new regulations and we are fully in agreement with the fact that the online financial industry is in need of tighter regulations in order to avoid any potential social unrest or any financial risk for potential investors. This is not in any way in contradiction with any of our policies and we will maintain our course in the development of our product as we continue to grow.
We now look forward to the next stage in the development of our product as we aim to improve in every aspect of the service we offer to our clients.
LoanChain is the progressive new project founded and developed by the Fintech giant Shifu Jinrong Group, who have been behind some of the biggest Fintech platforms in China. LoanChain is a mobile application-based peer-to-peer platform which is sleek and easy-to-use, and which offers a quick, efficient and completely secure online loan service using our very own advanced blockchain, developed to record and secure all smart digital contracts on a blockchain. It aims to give investors the opportunity to gain high returns on their money, while at the same time affording borrowers a simpler and quicker way to secure the funds that they need.