Beijing Launches Fintech Regulatory Sandbox with Central Bank Backing
The Beijing municipal government has announced the launch of a new pilot scheme for fintech regulation.
On 5 December the Beijing municipal financial regulator announced via its official website that Chinese capital was “taking the lead in launching fintech innovation regulatory trials, and exploring the establishment of an accommodating and prudential Chinese-edition ‘regulatory sandbox.'”
According to the announcement the new trial is being launched with the guidance and support of the Chinese central bank, and has the goal of establishing Beijing as a “national tech innovation centre and national financial regulatory centre.”
The Beijing finance regulator said that it would apply “soft regulatory methods” that involve open information, product notices and joint supervision.
According to its announcement the goal is to drive fintech innovation and quality and efficiency improvements in financial services, under the precondition that licensed financial institutions comply with laws and regulations, and protect the rights and interests of consumers.
Xinjingbao reports that Beijing municipality has approved 46 fintech trial projects – the largest number amongst province-level administrative entities in China, while there are currently over 100 fintech companies clustered in Beijing, with annual revenues approaching 100 billion yuan.