Regulators in China have banned online platforms from marketing illegal financial activities such as virtual currency issuance and trading. The ban is part of moves to strengthen the regulation of the online promotion of financial products and better protect investors.

The People's Bank of China, the country's central bank, and seven other authorities released a set of administrative rules on Friday to better regulate the online marketing of financial products, bringing such activities under comprehensive oversight.

Taking effect on Sept 30, the rules are aimed at addressing the risks associated with online platforms becoming a key channel for the promotion of financial products. While the platforms may improve efficiency and accessibility, issues such as misleading advertising and disorderly competition are also created in the process.

The rules provide comprehensive guidelines for financial institutions and third-party online platforms engaged in marketing financial products, requiring relevant parties to remain within licensed business scopes and prohibiting support for illegal financial activities, including illicit fundraising, unauthorized securities trading and virtual currency issuances and transactions.

New marketing practices such as algorithm-driven recommendations and livestream promotions have also been targeted, while misleading terms like "low interest rates" and "low thresholds" in loan advertising have been banned.

According the People's Bank, the latest moves underscore China's efforts to enhance protection of investors and financial consumers, strengthen regulation across all financial activities, and promote the healthy development of the internet finance sector.