Financial Authorities Launch A Blockchain Powered Regulatory Sandbox System in Sichuan, China
Nowadays, blockchain has become the cutting-edge technology and has been widely adopted in various application scenarios. Chinese government also notices the impact of blockchian on the transformation of traditional financial service and some financial sectors also uses blockchain solutions in government regulation.
Originally reported by China’s official mainstream media People’s Daily, The Financial Services Bureau of Sichuan Free Trade Zone has cooperated with blockchain startup PrimeLedger, a subsidiary of UCF Group, to jointly establish a financial regulatory sandbox system. This local governmental sector has successfully applied the heterogeneous blockchain system to the real-time supervision of financial data.In addition, this blockchain backed system can also provide technical support in pre-financial transactions and ongoing financial transactions supervision in order to control trading risk. meanwhile, the illegal transactions can be targeted according to the post-mortem supervision and the system can identify and block them in time before risk occur.
Zhang Zhenxin, Chairman of UCF Group indicated that, Blockchain technology can be used not only in government regulatory sectors, but also in various scenarios, for example, the supply chain finance, digital asset management, credit data statistics, cross-border logistics. Its subsidiary PrimeLedger has put a lot of efforts in developing blockchain solutions.
PrimeLedger is based on Higgs Chain open source platform to provide blockchain technical solutions to enterprises in different industries. At present, their business has covered financial, regulatory, depository, clearing, logistics and other fields.
“The blockchain is still in the early stages of development, both in terms of technology and economic volume. Under this condition, researching and developing of the underlying technology, promoting the integration of blockchain and industrial applications and actively embracing regulation are the ways to release the maximum potential of blockchain in boosting the real economy. And that is the main direction of our long-term business strategy,” said Zhang Zhenxin.