Peak Body for Internet Finance in China Releases New Blockchain Report

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The National Internet Finance Association of China (NIFA) released its “China Blockchain Finance Application and Development Research Report (2020)” (中国区块链金融应用与发展研究报告(2020)) on 14 April.

The 130,000 character report conducted an in-depth survey of participants in 47 organisations and 112 financial-sector blockchain application projects across China.

According to the report the organisations surveyed highlighted the use of blockchain for areas of finance including:

  • Supply chain financing (32.6%),
  • Trade finance (11.2%),
  • Insurtech (11.2),
  • Cross-border payments (7.9%),
  • Asset securitisation (6.7%).

The report further points out that data from the Cyperspace Administration of China indicates that over 40% of the entities that have completed filing for blockchain information services are involved with the financial sector.

These entities are comprised of fintech service providers, banks, fund companies, insurance companies, micro-loan companies and factoring companies.

With regard to policy recommendations, the report calls for:

  1. Strengthening research and analysis of blockchain security risk, closely tracking development trends, actively development industry discipline, and upholding the principle that “all financial activities are including under regulation.”
  2. Making full use of regtech including blockchain technology to strengthen the creation of regulatory capability and upgrades regulatory effectiveness.
  3. Closely follow the application of encrypted currencies to problems and challenges including cross-border capital flows, terrorist financing, money-laundering and tax evasion; continue to track international regulatory development, and participate in the research and drafting of cross-border regulations and benchmarks.
  4. With regard to illegal behaviour including breach of technical development regulations and harm to the financial order, maintain high pressure and continue to adopt measures to strike against them heavily and firmly contain malfeasance.

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