Bitcoin Regulation In China Still Unclear

China: official blockchain research lab announced

In other news from www.coindesk.com, despite the crypto crackdown, China’s Ministry of Industry and Information Technology announces a blockchain research facility.

According to a report by Caixin, the country’s Ministry of Industry and Information Technology has launched a research facility called the Trusted Blockchain Open Lab in order to support the ongoing development of the technology in China. To be operated by the China Academy of Information and Communications Technology (CAICT), the blockchain lab will conduct research in the area of blockchain, as well as creating a platform for specialists to share their knowledge around the technology.

Read more

Source: www.coindesk.com/chinas-it-ministry-backs-new-blockchain-research-lab/

China Scrambles to Catch Up With Runaway Boom in Fintech Investment

Great article from the WSJ.com on what’s behind China’s recent cryptocurrency clampdown…

China’s regulators are ratcheting up pressure on the country’s financial sector to slow the spread of investment products targeting small investors, aiming to curb risk from a new wave of technology-driven finance.

In recent weeks, Chinese central bank officials, banking and securities regulators have tightened oversight of a range of investing and technology platforms used by individuals to trade virtual currencies, invest in online loans and rapidly shift cash in and out of mutual funds.

A surge of Chinese investment—possibly more than $600 billion in the past two years—has gone into these so-called retail products, according to data from online platforms, financial information aggregators and cryptocurrency research houses.

Regulators are trying to avoid a repeat of a series of financial implosions that took place several years ago following a similar Chinese retail fervour. During that period, roughly 2 million Chinese investors lost as much as $25 billion from retail-investment products that collapsed in value as companies struggled to repay loans that underpinned the products, amid a slowing Chinese economy. Those events sparked months of public protests by aggrieved investors.

Read more

Source:  www.wsj.com/articles/china-scrambles-to-catch-up-with-runaway-boom-in-fintech-investment-1505727005

 

HSBC switches on selfie payments in China

www.finextra.com reports that HSBC customers in China can now make payments with a selfie, thanks to the introduction of facial recognition technology in the bank’s mobile app.

With the new system, the customer blinks into their camera using the ‘selfie mode’. Their identity is then checked against a photo held on a database. If the pictures match, and the customer enters the correct passcode into their banking app, they can transfer up to RMB50,000 ($7,600) a day.

Previously, they had to use a token device for authenticating and making transfers. China is the first country where HSBC is using facial recognition technology in this way.

HSBC has been active in implementing biometric techniques for customer authentication. In February last year the bank announced plans to roll out voice recognition and Touch ID for 15 million UK customers, and in September previewed the introduction of facial recognition to speed up onboarding for new business clients.

Read more