Beijing financial technology pilot "regulation sandbox", analysts: digital currency is expected to enter the pilot

Beijing Commercial Daily reporter Meng Fanxia Ma Yan intern reporter Liu Sihong

Source: Beijing Commercial Daily

Editor's Note: The original title was "Licensed Institution Leads Beijing Financial Technology Pilot" Supervision Sandbox "

Three months after the central bank's top-level design was released, fintech innovation supervision ushered in a breakthrough. On December 5, the central bank announced the launch of a fintech innovation supervision pilot, with Beijing taking the lead, and the Chinese version of the "regulatory sandbox" officially launched. Since this year, Beijing ’s exploration of the “regulatory sandbox” has also proceeded at full speed, and Xicheng District is expected to take the lead in trials. Analysts told reporters from Beijing Commercial Daily that licensees are expected to be the first to enter the pilot. In addition, "new, hot, and controllable risks" may be the standard for the pilot products. Among them, digital currency and other attempts, as well as loans and joint loans Controversial products in the traditional financial sector may also enter the pilot.

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Chinese version of "regulatory sandbox" launched

The Chinese version of the "regulatory sandbox" was officially launched, taking the lead in Beijing. On December 5, the central bank's official website announced that in order to implement the "FinTech Development Plan (2019-2021)", in accordance with the "State Council's Approval on Comprehensively Promoting the Opening-up of Beijing's Service Industry Comprehensive Pilot Work Plan", Beijing takes the lead in conducting fintech innovation supervision pilots, exploring the establishment of fintech innovation supervision tools that are in line with China's national conditions and in line with international standards, and guides licensed financial institutions to enable the use of modern information technology under the premise of legal compliance and protection of consumer rights. Improve financial quality and efficiency, and create an environment for innovation, development, and integrity that is safe, inclusive, and open.

In the afternoon of the same day, the Beijing Municipal Bureau of Local Financial Supervision also announced that it would take the lead in launching a fintech innovation supervision pilot nationwide under the guidance of the central bank, exploring the establishment of a prudent and inclusive Chinese version of the “supervision sandbox”, using information disclosure and products. Flexible management methods, such as public announcement and joint supervision, guide licensed financial institutions to promote fintech compliance and innovation, and empower financial services to improve quality and efficiency.

As we all know, how to balance fintech innovation and risk is a common problem faced by financial regulation, and the "regulatory sandbox", as a financial product innovation testing mechanism, has always attracted widespread market and regulatory attention. The Beijing Business Daily reporter noted that as early as last year's "Beijing's Plan for Promoting Fintech Development (2018-2022)", it was clear that Beijing would promote regulatory innovation and the construction of a risk prevention system, and explored the promotion of "regulatory management "Box" as the core fintech regulatory innovation pilot.

Since this year, China's exploration of the "regulatory sandbox" has also proceeded at full speed. On July 15 this year, at the "4th Global Financial Technology (Beijing) Summit", Li Wei, the director of the Central Bank ’s Science and Technology Department, revealed that the Central Bank, in conjunction with relevant ministries and commissions, will launch fintech in 10 provinces, including Beijing, Shanghai, and Guangzhou. Applying the pilot to establish and improve policies and measures adapted to the development of fintech, he called this pilot the Chinese version of the "regulatory sandbox."

Beijing Xicheng is about to pilot

In fact, with the continuous penetration of new technologies such as big data, artificial intelligence, and blockchain into the financial industry, regulatory innovation has gradually become an urgent matter. In particular, following the release of the top-level fintech design of the fintech released by the central bank in September this year, the "FinTech Development Plan (2019-2021)", the timing of the launch of the Beijing area has attracted much attention.

A Beijing regulator revealed that it is currently stepping up the formulation of specific Beijing landing rules in accordance with the requirements of the FinTech Development Plan (2019-2021) and further increasing the incentives and support policies for financial technology innovation. Sun Shuo, deputy secretary and mayor of the Xicheng District District Committee of Beijing, also revealed that the "supervisory sandbox" mechanism was about to land in Xicheng.

Regarding the launch of the regulatory pilot in Beijing, Yin Zhentao, deputy director of the Law and Finance Research Office of the Institute of Finance of the Chinese Academy of Social Sciences, told a reporter from the Beijing Business Daily that fintech is an industry with high capital investment, high talent concentration, and high innovation model. In Beijing, Shanghai, Shenzhen, and Hangzhou, Beijing has a good foundation and is the center and hub of supervision. The supervision pilot process requires the cooperation of many departments, which will be more convenient in Beijing.

Che Ning, deputy secretary-general of the Beijing Society of Cyber ​​Law and researcher at the Research Center for Financial Technology and Internet Security at Renmin University of China, told Beijing Business Daily that Beijing has won the first financial technology innovation pilot in China. The service industry is very positive. At present, Beijing's economic development is also undergoing transformation, and new economic growth points need to be found. The supervision pilot can be described as a stimulant.

"Beijing is the city with the largest number of fintech companies and continues to be the strongest fintech city in the world. Choosing Beijing with the most abundant fintech companies means that the fintech regulatory system has entered a substantive stage. The success of the pilot will also push the results to Nationwide. "Sun Yang, director of the Fintech Center at Suning Financial Research Institute, told a reporter from Beijing Business Daily.

Licensed institutions and digital currencies are expected to lead the way

"During the pilot process, some privileged 'regulatory exceptions' may be generated. Businesses that were originally not allowed or disputed may be allowed in the pilot, but according to the international 'regulatory sandbox' test situation Finally, not all innovative projects will be successfully implemented. "Chen Wenjun, a professor at Zhangjiang Research Institute of Fudan University and executive director of the Digital Economy Research Center, told a reporter from Beijing Business Daily. Several analysts pointed out that the pilot sandbox supervision will use blockchain, big data, artificial intelligence and other means to assist supervision, giving fintech products and corresponding supervision means an opportunity to experiment. So, what measures will this pilot take? What will happen next in the pilot?

Che Ning said that the central bank mentioned exploring the use of flexible management methods such as information disclosure, product disclosure, and social supervision. Next, a new mechanism and information disclosure platform may be established. From the perspective of flexible management, diversified social means may be used for supervision, and the Fintech Research Institute and industry self-regulatory organizations will play a role. In terms of technical means, monitoring technology based on big data and artificial intelligence will welcome a wave of good news.

Yin Zhentao believes that the pilot mode will mainly refer to the internationally popular "regulatory sandbox" model, set access standards and thresholds, conduct trials within a range, and leave the sandbox after passing. From the industry targeted by the pilot, the Internet is small Loans and other areas of innovation may be covered.

According to Che Ning, the pilot launch is a great advantage for the technical innovation of licensees. In addition, "new, hot, and controllable risks" may also be the standard for the industry and products of the pilot. Among them, the digital currency and payment fields may be the first to pilot , May be specific to a specific solution or product in the field.

"From the perspective of the main body, licensed institutions may be the first to enter the pilot, and loans such as loan assistance and joint loans that are involved in the traditional financial field but are in dispute may also enter the pilot. At the same time, there will be non-state forms like Libra (newly launched by Facebook Virtual cryptocurrency) digital currency attempts appear. "Chen Wenjun said.

Sun Yang said that under the guidance of the government's support for the development of inclusive financial policies, it is likely that in the future, technology application pilots serving small and medium-sized enterprises, inclusive finance, and rural finance will be encouraged, and financial technology will be developed to support small and support agriculture. .