On November 20, Xinhua News Agency reported that the People’s Bank of China (PBoC) has planned to create a better standard for regulating new technologies in the financial industry. According to that, the regulations will apply to 17 different categories in the Fintech such as Artificial Intelligence (AI), Blockchain, Big data, and Cloud Computing.
The People’s Bank of China
Trying to regulate the Fintech industry
Late last month, President Xi Jinping called for the promotion of blockchain technology nationwide and expressed a desire to become a leading country in the industry. To pick up the pace of technology, however, it requires China has to a neatly defined set of rules and now the country is efforting to take it to the next.
As announced from Xinhua News, this effort is taken the lead by PBoC. Yifei Fan, Vice President of PBoC, said in the National Technical Committee meeting that the bank intends to introduce better regulations to the entire Fintech sector.
He formulated that the financial industry in China “lacks the standards or needs to update the existing standards”. The current regulations for financial services are “not clear and strong enough to guide high-quality developments in the industry”, he added.
Vice President also underlined that urgently needs to fill shortcomings of financial standards that conform to the development trend of new technologies to be concerned above, as well as data security.
Blockchain is regulated by the China Central Bank
The new regulations are proposed that will apply for all subcategories of the country’s burgeoning Fintech industries. And Blockchain is one of the 17 categories were created by the PBoC but failed to elaborate on the other categories the regulations will be applied to, Fei said.
The statement is given after two other “industry standards”; one for registering all new blockchain projects (with 500 included in the first two tranches), and another is for 11 Fintech product categories in digital payments. Additional regulations were set for mobile financial payment platforms, voice and image recognition technologies as well.
This is just the latest step taken by the Chinese government with the aim of positioning the country as a leader in crypto and blockchain. Earlier this month, the plan to include cryptocurrency mining into a list of industries that would be banned in the country has been scrapped.
Besides, The Standardization Administration of China, a standards organization authorized by the State Council of China, claimed that set up a national standards committee for blockchain and distributed ledger technology, with a number of other technical committees.
According to the members of the administration, the progress has been very orderly until now, furthermore, the committee really wants to promote high-tech innovation at high-levels of openness and lead to high-quality development.
Moreover, China has so far 65 national financial standards and 252 financial industry standards, which include the aforementioned financial payment client technical specifications, and more.
The relationship of Fintech and Crypto in China
China is extremely fervent on distinguishing between blockchain and cryptocurrencies, clearly, support for Blockchain than in the future. The country has against the trading crypto although not ban mining.
This is actually in line with the recent news about center Bank planning to issue its own cryptocurrency somewhere roundly the beginning of next year. That was also the main factor to adopt a new law on cryptocurrency in China.
Currently, Yangtze River Delta Financial Technology, an indirect subsidiary of the PBoC, is actively recruiting for blockchain professionals which means that the new cryptocurrency expected to launch at the beginning of 2020 could be blockchain-based. On the other hand, the Central Bank Digital Money Research institute, established to oversee affairs related to the Central Bank Digital Currency, has been functioning for some time now and are working on the CBDC, according to the Chinese news.
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