On July 22, 2020, the Central Bank of China ("PBOC") issued the Circular on Promoting the Standardized Application of Blockchain Technology (the "Blockchain Rules") and the Appraisal Rules for the Assessment of the Application of Blockchain Technology and Finance (the "Appraisal Rules"), which are the first normative documents regarding blockchains issued by Chinese supreme authority.

Under the Blockchain Rules released by the PBOC, the Appraisal Rules have been examined and approved by the Chinese Financial Standardization Technical Committee, and have been implemented since then. Financial institutions are required to earnestly implement the Appraisal Rules in light of actual situations, establish and improve the risk prevention and control mechanism for the application of blockchain technology, regularly carry out external security assessments, and promote the standardized application of blockchain technology in the financial field. Meanwhile, financial institutions are required to, on the basis of meeting financial- related standards and provisions, file records for the application of blockchain technology in accordance with the Administrative Provisions on Blockchain Information Services.

The successive introduction of the Appraisal Rules and related services has enabled financial institutions such as banks, securities traders, and insurance companies to conduct product design, software development, and system assessment for the financial application of blockchain technologies, and will usher in unified standards and standardized services. On this basis, the prospect of blockchain technology finance application is worth looking forward to.