Huo Xuewen, director of the Beijing Financial Bureau: Blockchain must enter the "supervisory sandbox" test, and the first batch of projects will be announced next week

Source: Beijing News (http://www.bjnews.com.cn/finance/2020/01/12/673192.html)

The third meeting of the 15th National People's Congress of Beijing is about to be held. On the evening of January 11, the relevant departments of the “One House and Two Courts” accepted representatives' inquiries at the scene. Huo Xuewen, the director of the Municipal Local Financial Supervision and Administration Bureau, told the Beijing News reporter that the fintech "supervision sandbox" had landed last year and the first batch of projects will be announced next week.

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He said that the Chinese version of the "regulatory sandbox" has four requirements:

First, only licensed financial institutions that have obtained a one-line, two-session financial license can apply;

The second is that licensed financial institutions can apply independently or jointly with fintech or large technology companies;

The third is to abide by the principle of risk bottom line and not to break through the risk bottom line;

Fourth, testing can be done at the regulatory boundary. Projects entering the box must undergo strict screening and prior risk prevention agreements. If investors lose, the testing agency must compensate.

Huo Xuewen said that the purpose of the “regulatory sandbox” is to test the compliance of the project, the degree of risk control, and to better balance the development of fintech and the prevention and control of financial risks. Into the cage of the system. "

Huo Xuewen revealed that any technology applied to the financial field can be tested in the box, and blockchain technology must be included in the "supervisory sandbox" test. He said that the key to testing blockchain technology is not only testing the technology itself, but also the role of the project in serving the real economy, such as how well it can serve small and micro businesses, improve financial risk management, and provide financial value to more people. "Finance will become more and more scene, technical, digital, and inclusive, in other words, it will be closer to the people. How to make people more protected is the original intention of the supervision of the sandbox." Huo Xuewen said.