(ECNS) - China's central bank has issued draft guidelines for online gold business that ban Internet companies from offering gold deals in any form.
The Financial Market Department of the People's Bank of China said firms need to register with the bank when they sell the precious metal.
Online gold firms only act as sales agents and their registered capital cannot be less than 30 million yuan ($4.71 million), according to the proposed regulation. Online firms can display the gold products but are forbidden from offering services like settlements, transfers or multilevel proxies.
Gold products in the market can only be provided by financial institutions, the State Council, and gold exchanges approved by regulatory authorities, said the draft.
Insiders said the regulation will help clamp down on malpractices in precious metals investment. Guangdong-based New Express reported that silver investment may face tighter regulations after gold products.
