Zennon Kapron, founder & director of Kapron Asia and China Fintech, joined us in a conversation in how the Chinese government’s new regulations are shaping the fintech space in China. We discussed the impact of Wang’lian on digital payments, the reduction of peer to peer landing companies and the ban on ICOs and cryptocurrency exchanges to the dynamic fintech space in China. Last but not least, we look at how the fintech industry in 2018 within China will be shaped by emergence of new verticals such as AI or new regulation that continues to shape the fintech space in China.

Here are the interesting show notes and links to the discussion (with time-stamps included):

  • Zennon Kapron (@chinafintech, @kapronasia, LinkedIn, Wechat:zennon ), Founder and Director of Kapron Asia & China Fintech [0:38]
    • Since our last conversation, what have you been up to? [1:04]
  • Fintech in China [2:08]
    • Can you talk about the key developments in Fintech specific to China in the following verticals? [2:22]
    • Digital Payments and banking services [2:28]
      • China’s Wang’lian on digital payments regulation.
      • Perspectives on Chinese government’s regulation on the reserves required by funds run by Ant Financial and WeChat, for example, Yuerbao. [5:20]
      • Does the regulation from Chinese government allow the traditional banks within China to take on Alibaba and Tencent better? [7:30]
    • P2P lending [9:42]
      • How has the peer to peer lending space shifted with new regulation entering? [9:50]
    • Cryptocurrency and Blockchain technology [11:54]
      • The cryptocurrency market has taken a hit with China banning exchanges and ICOs, where is the blockchain technology with business models going from there? [12:08]
      • Instead of the cryptocurrency trading piece which is banned, what about the blockchain technology as itself within the fintech space? [14:47]
      • Have the three major bitcoin exchanges from China: BTC China, OKCoin and Huobi now relocated to other parts of the world and stopped allowing trading from China? [17:55]
      • What are the implications for Bitmain, the Chinese company which has 70-80% market share of bitcoin mining equipment in the world?
    • Are we seeing new verticals that are emerging within Fintech or instead see the Chinese government start to regulate the existing innovations which have emerged from the industry? [22:50]

Podcast Information:

The show is hosted by Bernard Leong (@bernardleong & weibo) and are sponsored by Ideal Workspace (Twitter, Facebook and LinkedIn) with their new Altizen Desk on Indiegogo (Twitter, Facebook, Medium). Also check out Ideal Workspace’s new standing desk, Altizen and sign up for their mailing list. Sound credits for the intro music: Taro Iwashiro, “The Beginning” from Red Cliff Soundtrack.