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China’s Securities Regulatory Commission (CSRC) is looking towards improving the securities and futures market by introducing the application of blockchain technology and smart contracts.
Chinese Securities Regulator Eyes Blockchain and Smart Contracts
China’s main securities regulator, the Securities Regulatory Commission, wants to implement blockchain technology and smart contracts in an effort to digitize the securities and the futures market.
At a recent conference during the China Securities Industry Alliance Chain and OTC Alliance Chain Special Work Symposium held in Beijing, the promotion of national alliance using decentralized technology was discussed.
Jiang Dongxing, deputy director of the Science and Technology Regulatory Bureau of the CSRC, made some important remarks on the matter. For instance, he said that the most vital task on the hand involves advancing the digital transformation of the securities and futures industry.
According to him, blockchain can help support the “digital transformation” of the securities industry as part of China’s 14th-year plan. Developed by the country’s Communist Party, the 14th year plan focuses on the economic system over the subsequent five years.
Dongxing further stressed on the idea of authorities developing new use cases for blockchain technology in businesses and the private sector including the need to apply “off-site” smart contract applications. This way, authorities will look upon their oversight of the securities industry in an attempt to improve their “regulatory services”.
China's Blockchain Not Bitcoin Policy
Despite China’s interest in blockchain, the country has taken a hard stance on its underlying tech called cryptocurrencies. In fact, the Chinese government even went far ahead to forbid cryptocurrency mining from several provinces of the country, including Sichuan and Yunnan, resulting in the global drop in Bitcoin hashrate and a subsequent decrease in the difficulty of mining.
Similarly, the People’s Bank of China (PBoC) conducted a series of crackdowns on illegal cryptocurrency trading activities this month and shut down 11 companies that were allegedly conducting illegal virtual currency transactions.