China and Australia's regulators have agreed to partner up on financial technology (fintech), a move that will give them oversight on new trends in each other's markets.
The Australian Securities and Investment Commission (ASIC) and China Securities Regulatory Commission (CSRC) said Monday that they would cooperate on the sharing of information related to emerging themes in the fintech sector.
"Cooperation between regulators is essential to realize the benefits of the technological revolution," Greg Medcraft, chairman of the ASIC, said in a statement Monday.
"Understanding new developments and their impact in overseas markets helps us to remain proactive and forward-looking in our domestic approach."
Regulators in both countries will also provide each other with insights on experiments with regulatory technology (regtech).
Regtech is an offshoot of the fintech sector pertaining to innovations that make both financial regulation and regulatory compliance simpler and more efficient.
"We also look forward to sharing our insights and experiences on regtech with the CSRC," ASIC's Medcraft said.
Fintech agreements to share information and collaborate on innovation have been formed by a number of countries.
Last month, the central banks of Hong Kong and Singapore agreed to a data sharing arrangement, as well as a cross-border trade project based on blockchain technology.
"In the past few years, the rapid development of fintech has created ample opportunities to introduce new financial services, enhance financial inclusion and fulfill investors' needs," Shiyu Liu, chairman of CSRC, said.
"However, financial market regulators around the globe also face new requirements and challenges posed by market innovations. The agreement between CSRC and ASIC will provide an effective channel for timely exchange of information on fintech developments and regulatory issues, and enhance regulatory cooperation between the two authorities."