China’s Internet Finance Association Says Blockchain Is Maturing

A recent survey by China’s National Internet Finance Association of China (NIFA) has found that blockchain technology is gaining a solid footing.

On April 14, Chinese local news platform Sina reported the results of the latest blockchain survey conducted by the National Internet Finance Association of China (NIFA). 

The “China Blockchain Fi­nance Ap­pli­ca­tion and De­vel­op­ment Re­search Re­port” takes into consideration 47 organizations involved with blockchain and 112 blockchain application projects within China. 

32.6% of all organizations surveyed were said to be working on supply chain financing, making up for a major part of blockchain implementation. Trade fi­nance and insurtech account for 11.2% of the market size each, while cross-bor­der pay­ments and as­set se­cu­ri­ti­sa­tion further make up 7.9% and 6.7%.

Financial institutes seem to be the most active in terms of leveraging the potential of blockchain. The survey cites a stat from the Cyper­space Ad­min­is­tra­tion of China which says that 40% of organizations involved in blockchain tech are “fintech service providers, banks, fund companies, insurance companies, microfinance companies, commercial factoring companies, etc.”

Policy recommendations

Considering the rapid growth of blockchain technology across various industrial sectors, especially finance, the report mentions that blockchain is headed towards maturity. 

To ensure that China sees better growth in both finance and blockchain, NIFA recommends organizations to closely monitor blockchain security risks while also tracking development trends. 

Besides, NIFA also insists that all participants of blockchain and cryptocurrency space strictly abide by regulations and prevent cryptocurrency-related crimes such as money-laundering, terrorism financing, tax evasion, etc.

They also placed great emphasis on companies to track development around international blockchain and crypto regulations to help China formulate better cross-border regulations and blockchain standards.