China Securities Regulatory Commission considers using blockchain technology to create the “next generation of financial infrastructure”
A senior official from the China Securities Regulatory Commission (CSRC) has highlighted the application of blockchain technology to regulatory trials in the country’s regional equity markets, according to China Banking News on October 22.
Tao Qian, head of CSRC’s regtech department, said that the authority was currently exploring the application of various forms of fintech including blockchain technology to regional equity markets in order to create the “next generation of financial infrastructure.”
According to Tao regional equity markets in China provide an excellent testing ground for new forms of fintech and regtech, while trials also help to improve these markets and expedite the financing of local small enterprises.
“We all know that compared to main board markets some regional equity markets lack development and appear comparatively peripheral” said Tao. “By starting innovation trials of fintech at the periphery, we feel that risk is controllable and marginal effects are also higher in comparison.”
Tao said that CSRC has created a “dual architecture” blockchain system, comprised of CSRC’s “central regulatory chain” at the higher level and local operational chains at the lower level.
“CSRC is responsible for the development of the regulatory chain, and mainly undertakes regulatory duties, while the local operational chain is independently developed by regional equity markets, and undertakes specific operational and commercial work,” said Tao.
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