China Launches New Regulatory System For Fintech Products
- A “Certification of Fintech Product” will be given to all products that pass the prototype and on-site inspection.
- The certificate cannot be used for promotional purposes and has to be renewed every three years.
Silhouette of Chinese landscape. Freepik
The People’s Bank of China will license 11 types of financial technology software and hardware that are broadly used for blockchain services and digital payments via its new verification platform titled “Certification of Fintech Products”.
As stated in filings from October 26, China’s central bank announced the first batch of fintech products that are to be used in front-end and back-end development processes for digital payment services.
As China is advancing seriously on the development of its new financial infrastructure and the digital version of its currency, this new regulatory system comes right on time.
The People’s Bank of China believes that digital currency will improve the digital payment sector as a whole. The bank is bragging about the superiority of its token’s security characteristics and offline transaction capabilities in comparison to other commercial products coming from WeChat Pay and Alipay.
As noted, the central bank of China offers 11 fintech products and the new system will cover all products that can be implicated in digital payment services. This includes embedded application software, point-of-sale mobile terminals, security carriers and chips, and front-end software.
All products that successfully pass the prototype inspection and on-site audit will receive a Certification of Fintech Product (CFP). According to the bank, this certificate has to be reviewed and renewed every three years.
Associated jurisdictions can review any step of the production process at a random principle to guarantee compliance during the certificate’s legitimacy. The certificate cannot be used for direct promotion of products but the related institutions will be able to put the certificate’s mark on their logo.
One interesting product in the list of 11 is the trusted execution environment (TEE), which is a technology that, as stated in the filing, helps in the formation of a “consortium blockchain network and verifying blockchain transactions in financial transactions use cases”.
In is interesting that in August 2018 Microsoft also filed for two patents for technologies that are quite similar and would enhance the security and scope of its blockchain services.
- Crypto.com has once again expanded its regulatory achievements with the acquisition of a major payment institution license for digital payment token services in Singapore.
- The license, for which the company received an in-principle approval last June, enables the exchange to provide a greater range of payment services in Singapore.
Shutterstock
- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.
- All virtual asset service providers (VASPs) in the UAE are now required to submit a licensing application with the Securities and Commodities Authority.
- Firms that have already acquired a license in the UAE’s financial free zones will be exempted from the requirement, but those in Dubai will still need to apply with the SCA.