China Securities Journal: Using blockchain technology to reduce financial supervision costs

On November 21, China Securities Journal published a commentary article saying that strengthening supervision and improving the ability to prevent and resolve financial risks is the focus of the supervision department. The application of distributed accounting technology represented by blockchain in the financial field is of great significance for improving regulatory efficiency and policy quality. In the market where asset tokenization (asset tokenization refers to the process of issuing blockchain tokens to represent tradable assets by electronic data, similar to traditional asset securitization processes), the regulatory framework can automate compliance with distributed ledgers. Monitor, optimize the process of passing, verifying, and analyzing data. Based on the trust mechanism generated by the market's common economic motives, blockchain data can be used to improve the compliance mechanism of the financial sector. Future blockchain technology has the potential to reduce regulatory costs, improve the efficiency of risk monitoring, and promote high-quality financial development.