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International FinTech Watch: China Announced Positive Stance on Blockchain Technology

Date:


By Jim Bulling and Wendy Li

On 24 October 2019, China President Xi Jinping expressed strong support for blockchain, which was depicted as “a core technology” to promote China’s industry innovation and digital economy development. In his speech, he also noted that blockchain technology has already been applied in a number of sectors like digital finance, internet of things, intelligent manufacturing and supply chain management, and that since China has a solid foundation of blockchain technology, it should seize the opportunity to build up blockchain industrial ecology and accelerate the integration of blockchain, AI, big data and other cutting edge technologies.

Chinese
government’s explicit positive stance related to blockchain and other cutting
edge technologies was also confirmed by some specific regulatory announcements.
For instance, on 26 October 2019, Cryptography Law of the People’s Republic of
China was formally passed by legislature and will be effective from 1 January
2020 to regulate data encryption and cyber-security. On 6 November 2019,
China’s National Development and Reform Commission removed “cryptocurrency
mining” from the “undesirable industry” list, which might be indicative of the
government’s relaxation on cryptocurrency restrictions. However, on a
cautionary note, on 18 November 2019, a department of China Banking and
Insurance Regulatory Commission warned of the usage of blockchain in illegal
fund-raising.

Australia
and China have developed an increasingly cooperative bilateral and regional
relationship in FinTech sector. For instance, in 2017, ASIC and China
Securities Regulatory Commission entered into the Information-Sharing Co-operation
Agreement
, which,
amongst other things, included the sharing of “information on regulatory
technology (RegTech) development, including experiences with trialling regtech
solutions for regulatory purposes”. In a recent speech by ASIC
Commissioner Cathie Armour

at the China Financial Submit 2019, Commissioner Armour introduced to the Chinese
audience FinTech developments in Australian context and discussed ASIC’s
participation in international networks.

K&L
Gates as a global firm has a well-developed blockchain related legal practice across the world, which also
relates to Financial Services, FinTech, Regulatory, Cryptocurrency and ICO. For
more information about our blockchain industry experience, please email blockchain@klgates.com.

Source: https://www.fintechlawblog.com/2019/11/international-fintech-watch-china-announced-positive-stance-on-blockchain-technology/

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