China Creates New Regulatory Authority for Blockchain Products and Digital Payments
October 2019 has seen change come to China regarding blockchain, technology innovation and future plans in the Chinese financial system.
Earlier this month, China's President Xi Jinping made announcements on blockchain prompting banks to begin investing in the industry. In line with this, it is reported the next direction will be a new digital currency for citizens in China to use.
FinTech is a thriving sector, with banks, healthcare, and major industries all aiming to advance their tech and reach larger audiences. Adoption rates in China are reported to be as high as 87%. Prompting global change and an ongoing struggle to be the best in emerging sectors.
To combat fraud, false advertisement and to ensure companies are held to a high standard, China will also be introducing a new Certification of FinTech Products. China's central bank, the Peoples Bank of China will be leading this verification system and issuing the certificates. The certification covers the following:
- POS mobile terminals
- Embedded application software
- User front-end software
- Security carries
- Software chips
Random inspections can be carried out to ensure companies are complying with regulations and continue to be certified as following the rules.
More security and regulation for companies to remain diligent is a boost for investors and users of these products. With a possible Chinese renminbi digital currency being launched, it will be key for safety and a strong set of regulations to be in place, with questions over control and centralization being sure to raise some eyebrows.
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