Core Viewpoint - The "pre-pricing trading" platforms in the Shui Bei gold market have increased their entry barriers, requiring users to submit personal identification and undergo manual verification, which can take a day. Despite warnings about potential illegality, these trading practices continue to evolve and proliferate in more concealed forms [2][19]. Group 1: Changes in Trading Practices - The platforms have shifted from promoting "pre-pricing" to "pricing settlement" models, allowing users to settle profits and losses based on real-time gold prices without physical delivery of gold. Some platforms claim that a deposit of 10,000 yuan can control gold worth about 1 million yuan, with leverage ratios approaching 100 times [2][19]. - The market participants have changed significantly, with many new players lacking experience in gold trading entering the market, primarily engaging in online electronic trading without physical delivery [2][19]. Group 2: Increased Complexity and Risks - The process for participating in these trading platforms has become more complex, requiring users to provide identification and undergo risk assessments before trading. Some smaller platforms have moved away from high-exposure entry points like mini-programs to self-built apps [20][21]. - The funding flow has become more opaque, with users needing to contact customer service for specific bank accounts to transfer funds, and deposits are not immediately reflected in their accounts [21][4]. Group 3: Tax and Regulatory Implications - To avoid tax costs associated with physical delivery, some platforms are upgrading their business models to "pricing settlement," where users can settle based on price changes without taking physical delivery of gold [23][24]. - The tax implications are significant, as transactions that do not involve physical delivery typically do not incur value-added tax, but may still be subject to personal income tax on profits [25][26]. Group 4: Operational Risks and Compliance Issues - Many platforms claim to use overseas API hedging mechanisms to reduce trading costs, allowing for significantly lower entry barriers compared to compliant markets. However, the authenticity of these hedging practices is questionable, raising compliance risks [28][30]. - The operational model of these platforms often involves separating client deposits through domestic private accounts while claiming to hedge risks in overseas markets, leading to potential issues with fund security and regulatory compliance [30][31]. Group 5: Market Dynamics and Regulatory Challenges - The influx of inexperienced participants into the pre-pricing trading sector has been rapid, driven by rising gold prices and the popularity of mobile trading. Many of these new operators lack a background in physical gold trading [32][33]. - Regulatory challenges persist, as these trading activities often fall into a gray area, complicating enforcement and necessitating a collaborative approach among various regulatory bodies to effectively manage and oversee these operations [34][35].