Tencent fined $436,000 by China foreign exchange regulator

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Tencent fined $436,000 by China foreign exchange regulator

CHIANGHAI Reuters -- China's foreign exchange regulator fined Tencent Holding's Tenpay for violating foreign exchange rules, as authorities step up supervision of the country's fintech industry.

The State Administration of Foreign Exchange SAFE Shenzhen branch fined Tenpay, Tencent's online payment platform, 2.78 million yuan $436,000 for misconduct, including conduct of foreign exchange business beyond the scope of its registration, according to a statement posted late Friday on the regulator's website.

The FX regulator ordered the company to rectify the violations and confiscate illegal gains, and gave the company a number of warnings, the statement said.

Tenpay has formulated an improvement plan and implemented it item by item in response to the problems found in the routine inspection in 2019 -- 2020 and has now completed the rectification of all of them, according to a statement to Reuters on Monday.

It said the company will strengthen compliance management under the direction of SAFE's Shenzhen branch.

China has launched a wide-scale clampdown on its technology sector this year, with the competition regulators in particular dishing out fines and warnings and conducting investigations into the biggest names in the platform economy.