On Licensed Operation of Mutual Aid Platforms

A few irresponsible media reports and expert comments accuse mutual aid platforms of operating without a license. This is quite unreasonable.

First, licensed operation presupposes that the state has stipulated that this industry must hold a license to operate. The question is: is there any regulation that explicitly makes a license mandatory for the mutual aid industry as it stands?

Second, regulation of the mutual aid industry is still being explored, and we have been fortunate enough to take part in research and offer regulatory suggestions. Whether mutual aid should even be brought under a licensing regime is still an open question — so where does the claim that a license is required come from?

Third, even if a license were required, does the state have a license suited to mutual aid platforms? Mutual aid has a different operating logic from insurance, and official documents have also made clear the position that mutual aid is not insurance. An insurance license is certainly not suitable — so which license would be?

Fourth, granting the most extreme scenario for the sake of argument, if in future the regulators decide that mutual aid should also come under insurance licensing, then we would apply. But right now there is no such clarity.

Fifth, when it comes to innovation, there is certainly no way to license it at the outset. A license cannot anticipate what innovation will produce — that is common sense. Think of Xiaogang Village in Anhui, think of Alipay!

So I say this view is unreasonable and alarmist, and simply passes the buck to the regulators — a platitude that is no doubt politically correct but of little use. And who could welcome licensing more than we mutual aid platforms?