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National securities regulators of China and Australia have reached an agreement to share information to promote FinTech innovation. markets.
The Australian Securities and Investment Commission (CSRC) has signed a FinTech Cooperation Agreement that will allow both authorities to share and use information on emerging market trends and developments to promote innovation in financial technologies. the markets of others.
"In recent years, the rapid development of FinTech has created many opportunities to introduce new financial services, improve financial inclusion and meet the needs of investors," said Shiyu Liu, president of CSRC
The alliance is remarkable for several reasons. China is Australia's largest bilateral trading partner in goods and services in a market valued at $ 155.2 billion in 2016. China is also the largest export and export market. of Australia import. The FinTech agreement relies on established commercial links.
Secondly, as ASIC quickly points out, China is the world's largest market for FinTech investments and, more pertinently, the adoption of financial technologies in wider society. The likes of Alipay and WeChat Pay, two major retail payment platforms, account for around 1.1 billion combined users in their payment platforms. FinTech's investment in Chinese companies exceeded $ 10 billion in 2016.
ASIC President Greg Medcraft said:
This agreement represents an exciting opportunity for us to learn more about the Chinese fintech sector, which is renowned for its success and dynamism. We are also looking forward to sharing our ideas and experiences on regtech with the CSRC.
The Cooperation Pact will also address regulatory issues related to innovation in financial services to help authorities develop regulatory approaches in a rapidly disrupted financial services sector.
The agreement between the CSRC and ASIC will provide an effective channel for timely exchange of information on technological developments and financial issues, and will strengthen the regulatory cooperation between the two authorities.
Despite their merger, the two securities regulators have adopted significantly different regulatory approaches to the initial collection of funds, a radical new application of cryptocurrency-fueled financial technology. In September, the CSRC was part of a number of Chinese authorities, led by the Chinese central bank, to impose a blanket ban on ICO financing after qualifying it as " illegal fundraising practice that has severely disrupted the economic and financial order. ]
During the same month, the ASIC issued guidelines to help companies and startups understand their obligations when they offer ICOs by complying with relevant laws in Australia.
Unlike his Chinese counterpart, the Australian regulator of corporations and securities wrote:
ASIC recognizes that country offices can make a significant contribution to the options available to businesses for raising funds and investment options available to investors.
Image from Shutterstock.