China Securities Regulatory Commission appeals to Government for Blockchain based financial infrastructure
The Shanghai Stock Exchange published a research paper highlighting the possible integration of Blockchain technology in the Chinese financial infrastructure, which argued that adopting the distributed laser technology based replacement for the current transaction settlement model would dramatically improve efficiency Could.
As the world's fourth largest stock exchange, the Shanghai Stock Exchange (SSE) claims a market cap of $ 5.01 trillion US dollars by March 2018 and is directly governed by the China Securities Regulatory Commission. The research paper, published on July 10, 2018, analyzes the potential benefits of blockchain integration in financial market infrastructure, citing significant potential impacts driven by the unique technical characteristics of distributed account technology.
China's eye on DLT based market
China's National Internet Finance Association (NIFA), along with the Blockchen Research Working Group, took an active approach towards the development of the blockchain industry in the country, China's regulatory approach to cryptocurrency & block hain technology recently turned to a positive situation.
Administered by the People's Bank of China and the State Council, NIFA acts as self agencies that promotes the development of FINTECH within China. Speaking at the 2018 BAO form for asia in April, Li Lehui, head of the Nifa Blockchen Research Working Group, highlighted the need for innovation within the region to prevent the defeat of China's Blockchen weapons.
"While last year in China, Blockchain's technological advances have seen major progress in China, such as with the blockbuster platforms launched by internet giants like Baidu and Tenant, our regulatory initiatives are far behind, what we need for the future There are clear regulatory guidelines for the entire industry. "
SSE Research Paper is a sign of a more progressive trend than Chinese progressors by referring to the 2012-2013 World Economic Forum Future of Financial Infrastructure Report from Chinese Regulators.
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China recognizes the technology behind bitcoine, "Considering the lack of discussion regarding the development of blockbank within China," there is the possibility of "deepening of the business of banks across the world" keeping in mind the lack of discussion.
Several areas have been pinpointed in the report, in which blockchain technology can potentially improve the Chinese financial landscape, noting that the technical features of Blockchain are "very suitable" for building financial market infrastructure:
"A common universal consensus is that digital laiser technology will prove to be a new revolution for the financial industry, using it to issue over-the-counter security and settlement of business, as well as order-book problems will be settled immediately".
The SSE argues on blockchain technology, that blockchain technology can solve a wide range of anti-money laundering and information sharing processes, as well as "reducing the time of settlement and reducing the risk of failure to settle" Clearing and settlement procedures can improve.
"Regulation should be favorable to developed technology. We recommend that the regulatory DLT topic be forwarded as an important study area, there is a need to develop a solid regulatory framework for embracing financial innovation."
Future for Blockchain & cryptocurrency regulations within China, however, keeps a more approved approach toward DLT focused focused innovation. During the recent interview with China's professor of political science law and Chinese media savvy Dekkal, the emphasis on the importance of liberal blockchain regulation in China has been emphasized.
"The relevant law shows the combination of sensible supervision and innovative promotions ... we should gradually build a mature legal system for blockchain finance and digital currency regulation, and I believe that blockchain finance and digital currency industry There is a lot of development in China "