Select a page

Banking News

China commits to faster fintech regulation certainty

China commits to faster fintech regulation certainty

(28 August 2019 - China) The People’s Bank of China (PBoC) has committed to speeding up the development of a regulatory framework for financial technology (Fintech) to promote China as a world leader in Fintech.

The PBoC has announced a plan to develop the fintech industry by 2021, designed at improving the quality of financial services, strengthening regulation on technology-driven innovations and preventing systemic financial risks. The plan lists key development targets and tasks for Fintech, describing fintech as the ‘new engine’ for high-quality development of China’s financial industry which will boost the ‘healthy and sustainable’ development of the real economy.

The plan also highlights the use of Fintech to address cross-market and cross-regional financial risks, while enhancing cybersecurity and financial data protection. It appeals for the proper use of big data, cloud computing, artificial intelligence (AI), distributed ledger databases (DLT) and an online identity authentication system however the full plan has not yet been published. “Through the proper application of Fintech, consumers should benefit from diversified financial services and products and lower costs” the PBoC stated. Cybersecurity is high on the global regulatory agenda, with the European Union (EU) notably introducing the Cybersecurity Act in 2019. The new regulation gives ENISA, the EU’s Agency for Cybersecurity, a permanent mandate. The act also establishes an EU framework for cybersecurity certification, boosting security for digital products and services in the region.

"The industry thinks initiatives such as cybersecurity assessment tools, voluntary frameworks, and workshops are much more effective to address cyber-risk than prescriptive rules. Since cyber-risks and the means to address them evolve so rapidly, static requirements could end up outdated and counterproductive” said Katherine Mooney Caroll, partner at Cleary Gottlieb.

Comment on this article

 

Your comments will not be published. Required fields are marked *

 

Please enter the word you see in the image below:


Subscribe

Subscribe to our mailing list

Sign up now to keep up-to-date with the latest
market news and insights in B2B banking.

* indicates required

For more information please read our Terms and Conditions and Privacy Statements.