- Jack Ma on FinTech regulatory issues.
- Jack Ma believes FinTech is being destroyed by regulatory barriers.
- The entrepreneur also slams Basel accords.
Monetary regulators of China are under fire, accused of failing to understand the comprehensive risk prevention system by Jack Ma, co-founder of tech conglomerate Ali Baba and Head of the fintech firm Ant Group. Further disapproving the Basel concede, Ma rejected the international regulations on the finance sector, deeming them unfit for China market.
The tech giant strongly disparaged the notion calling them constraints to innovatory growth of digital finances across Europe and answer to the older financial era’s problems.
Jack Ma on FinTech, slams Basel accords
Speaking at a shanghai based forum, Ma highlighted the Chinese market’s absence of a financial ecosystem, while the Basel regulatory framework continues to address organized financial risk which is not the need of the current time. Present at the event were notable industry leaders such as the governor of the People’s Bank of China (PBoC), Yi Gang, the vice finance minister Zou Jiayi, and former governor Zhou Xiaochuan.
Ma spoke about the rising innovations of the day and the importance of supervising them through an equally innovative approach instead of outdated supervisory standards.
Before the Jack Ma on FinTech views, the Ant group recently made public its IPO (initial public offering) in Hong Kong, expected to be highest ever reported historically and is said to be between $350,000 – $450,000 approximately. The news is further targeting a raise of $30 billion, leaving Saudi Aramco behind in the race. This would also explain the Jack Ma on FinTech stance, the entrepreneur is taking.
Zou Jiayi, China’s vice finance minister, warned blockchain tech firms to stay withing set financial regulations. He further recognized the importance of striking the right balance between technology and financial security. Opposing Jack Ma’s views Zou highlight the risk of low-interest fields within which fintech companies are operational and supported the prevention of tech giants, creating a monopoly within the sector.
Public Bank of China is overseeing rigorous testing to launch its digital currency Yuan through a blockchain enhanced QR code-based mobile application.