With the new investment, the company will increase its registered capital from the current RMB 300 million to RMB 500 million to comply with new rules.
Regional governments have intensified the clampdown on online lenders in recent months.
Shanghai’s financial regulator announced a five-year plan to develop a fintech center on par with competitors around the world.
No specific rules or requirements have been proposed, such as an implementation timeframe.
The company said the decision was made “to fulfill regulatory requirements.”
Amid an on-going regulatory crackdown on China’s online lending sector, many platforms are turning to blockchain for help.
Large P2P lending platforms are exiting the space amid the government’s ongoing efforts to clamp down on fraud activities and lower financial risks.
The firm said it will shut down its online lending businness by the end of 2021.
The fast growth of Chinese P2P platforms is not the only thing that is different from their US counterparts.