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China announces new Regulatory Authority to certify digital payment and blockchain products.

The Certification of Fintech Products is a new China's verification system that will be used by China’s central bank, the People’s Bank of China, to certify 11 types of financial technology hardware and software that are widely used for digital payment and blockchain services. 

According to filings which was dated Oct. 26 from the bank,
the central bank  released the first list of fintech products that could be used in both front-end and bank-end development for digital payment services in China. 
As China is accelerating the development of it’s new financial infrastructure and  including a digital version of its currency and a push by President Xi Jinping to capitalize on blockchain technology came this new regulatory system. 

The central bank looks at the national digital currency boosting and enhancing  the digital payment industry as well as encouraging its own coin’s security features and off-line transaction ability as superior to commercial products offered by China’s Alipay and WeChat Pay.

Currently on the central bank’s lists are the 11 Fintech products.  All the products that could be involved in digital payment technologies are covered by the certification system such as  point-of-sale mobile terminals, user front-end software, and security carriers, chips and embedded application software. 

The reports from the Central bank says "if applicants products pass the prototype examination and on-site checks, a Certification of Fintech Products will be granted to the person". The certificate will be reviewed and renewed every three years, the bank stated.

There will be random inspections to be conducted by the relevant authorities  on any step of the production process to ensure compliance while the certificate is valid. However Institutions will be allowed to stamp the certification on their logo but the certification cannot be used for advertising or to promote a products directly.

The trusted execution environment (TEE) is among one of the very specific items included on the list of 11 products.

According to the filing, “TEE” is  a technology that can assist in the establishment of a “consortium blockchain network and verifying blockchain transactions in financial transactions use cases,” 
In August 2018, The U.S. internet giant Microsoft filed for two patents to use similar type of technologies to improve the capacity of its blockchain services offerings and security too.

Credits: David Pan

Florence Anusionwu

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