Weekly | China's blockchain industry is welcoming new opportunities, Libra has entered the crisis

PA Weekly 79th 10.11-10.27

Text | Zhou Wenyi Editor | Bi Yi Tong Source | PANews

 

Overview: The top layer releases good news, blockchain as an important breakthrough for independent innovation of core technologies; US Treasury: agrees that Libra must be monitored to question the capabilities of national regulators; Facebook hearings ignite the crisis of trust, and the Libra project is “cold-down”; Trump's former campaign adviser Stephen Moore launched the stable currency Frax.

According to PANews statistics, there were 12 project financings in the blockchain field announced last week, with a total amount of over US$94.95 million (excluding projects that have not disclosed specific investment and financing amounts), involving VCs, funds, software, trading platforms, online banking, Ticketing platform, payment, games and other fields.

O1

The top layer releases good news, blockchain as an important breakthrough for independent innovation of core technologies

On the afternoon of October 24th, the Political Bureau of the CPC Central Committee conducted the 18th collective study on the status quo and trend of blockchain technology development on the afternoon of October 24. Xi Jinping, general secretary of the CPC Central Committee, emphasized that the integrated application of blockchain technology plays an important role in new technological innovation and industrial transformation. We must take the blockchain as an important breakthrough for independent innovation of core technologies, clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation.

The political bureau of the CPC Central Committee has clearly defined the development status, development value and future development direction of blockchain technology. Collective learning mentioned that the application of blockchain technology has extended to digital finance, Internet of Things, intelligent manufacturing, supply chain management, digital asset trading and other fields. At present, major countries in the world are accelerating the development of blockchain technology, and China has a good foundation in the blockchain field.

General Secretary Xi Jinping delivered a speech on promoting the development of blockchain, and the blockchain and encryption industries are heating up rapidly.

On October 26, the 14th meeting of the Standing Committee of the 13th National People's Congress voted on the Saturday afternoon to pass the cryptography, which will take effect on January 1, 2020. The cryptography is aimed at standardizing the application and management of passwords, promoting the development of the password industry, ensuring network and information security, and improving the scientific, standardized and legalized level of password management. It is a comprehensive and basic law in the field of passwords in China. With the gradual approach of the cryptography, the entire cryptographic industry will also be standardized. It is reported that the main functions of the password are two: one is encryption protection, and the other is security authentication. Li Zhaozong, director of the National Cryptographic Administration, said: "Passwords have played an irreplaceable role in all historical periods in China. The cryptography work faces many new opportunities and challenges, shoulders more arduous guarantees and management tasks, and develops a password. Comprehensive and basic laws in the field are necessary."

On October 27, according to the Beijing News, State Grid has officially established State Grid Blockchain Technology (Beijing) Co., Ltd., and settled in Xicheng Village of Zhongguancun Science and Technology Park. The company will focus on blockchain technology research, product development, public service platform construction and operation, etc., positioning itself to build a common technical means for the construction of ubiquitous power Internet of Things, realizing the super link of the Internet of Everything, the security line of fair trade in the market, digital Economic credit guarantee.

Bitcoin rushed from around $7,500 to more than $10,000 in just two days from Friday to Saturday. It rose nearly 40% in two days and is still at a high near $9,700. The blockchain has stopped rising and the market has exceeded 100 stocks.

In addition, a number of media organizations led by CCTV began to intensively report on the blockchain. CCTV commented that the important speech of Xi Jinping's general notes clearly explained the important role of blockchain technology in new technological innovation and industrial transformation, and put forward specific requirements for the application and management of blockchain technology. The CCTV News WeChat public number issued the article "The blockchain that has been frequently named recently, is a flaw." CCTV's second set of financial channels "CCTV Finance Review" Saturday live broadcast theme is "blockchain: What to upgrade? What should I circumvent? 》. On Sunday evening, in the "Oriental Time and Space" column broadcast by 13 CCTV, the column explained the basic knowledge of blockchain and cryptography in a technical case. The column introduces the application scope of the current blockchain, such as: financial services, supply chain management, public services, smart manufacturing, education and employment, culture and entertainment.

O2

US Treasury: agrees that Libra must be monitored to question the capabilities of national regulators

On October 24th, US Congressman Emanuel Cleaver issued a statement on October 22nd calling for a review of the potential systemic risks of Libra and its Calibra wallet, and the US Treasury Department responded positively to this request. In response, the US Treasury Department pointed out that Libra must comply with the "Guidelines for Anti-Money Laundering and Combating the Financing of Terrorism" and the requirements of the US Bank Secrecy Act. The U.S. Treasury questioned the ability of regulators in the United States and other countries to regulate Libra and called for necessary corrections, stating that these issues must be resolved before Libra launches, and said it would monitor Libra and the cryptocurrency market to work with the House of Representatives Possible regulatory loopholes.

O3

International Association of Coding Organizations set up working groups to standardize digital asset tags

On October 23, according to CoinDesk, the International Association of Coders (ANNA) established a working group to address the issue of standardization of digital asset tags across the financial markets. ANNA today announced that the new working group will consider the appropriate International Securities Identification Number (ISIN), which is used by the International Organization for Standardization (ISO) to promote global enterprise standardization. The association said the group will investigate digital asset tags for cryptocurrency, tokens and blockchain technologies that intersect with financial markets.

O4

Financial regulatory organizations such as the US Securities and Exchange Commission join the global financial innovation network

According to a press release issued by the US Securities and Exchange Commission (SEC) on October 24, the US Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the US Securities and Exchange Commission have joined the world. Financial Innovation Network (GFIN). GFIN is a coalition of 50 organizations that consults on topics such as the development of technologies such as distributed ledger technology and artificial intelligence, as well as topics such as securities regulation and ICO. The purpose of US regulators participating in this network is to further enhance their expertise in the US and overseas to meet the interests and needs of financial regulators on behalf of the US and its financial services stakeholders.

O5

FATF will start inspections on the Japanese virtual currency industry on October 28th.

On October 23, according to Cointelegraph, the International Financial Action Task Force (FATF) of the International Anti-Money Laundering Multinational Organization will conduct a related inspection of the Japanese virtual currency industry from October 28 to November 15, the Japanese cryptocurrency exchange and Related companies are expected to be reviewed. The Financial Action Task Force stated that during the actual visit, the review team will meet with selected public and private business representatives based on the country's risk profile.

Not long ago, the International Financial Action Task Force (FATF) of the International Anti-Money Laundering Multinational Organization held its first meeting after the rotating chairman of the Central Bank's Department of Law and Law, Liu Xiangmin, from October 16th to 18th. Assess whether countries have taken the necessary steps to implement the new requirements for cryptocurrency regulation, "the FATF is now agreeing."

The statement mentioned: “In view of the global nature of the virtual asset industry, it is very important for countries to implement these requirements quickly, especially to understand the risks and ensure effective supervision of the industry.” “From now on, the assessment will pay special attention to the extent to which countries have implemented These measures.” The FATF stated that countries that have undergone a joint assessment must report on the follow-up process following action. The FATF will closely monitor progress and continue to actively communicate with the private sector to explain the requirements that the FATF applies to them.

 

O6

Lithuanian central bank issues STO guidelines

On October 23, according to Coinpage, the Lithuanian central bank has become the first market regulator to issue the STO guidelines. The new guidelines focus on the classification of securities tokens, evaluate specific cases and provide advice on securities token issues and clarify applicable laws and regulations. In addition, companies planning to use the STO approach will need to comply with EU and national regulations on fundraising activities. The Lithuanian central bank said that the current focus on STO is gradually replacing interest in ICO. Businesses are interested in replacing bank loans with this special way of raising funds. The STO guide is intended to explain the bank's position in this regard, rather than establishing new regulatory arrangements.

O1

The Zuckerberg hearing ignited the crisis of confidence and the Libra project was forced to land

On October 23rd, Facebook CEO Mark Zuckerberg participated in a hearing on Libra held by the House Financial Services Committee. The topic of the hearing was "Exploring Facebook and Its Impact on the Financial Services and Housing Sector." At the hearing, Congressmen raised a number of sharp questions about Zuckerberg's Facebook encryption project Libra, user privacy protection and data security, and ad review. The cryptocurrency Libra is of course the focus of Congress.

The chairman of the committee, Maxine Waters, objected to the Libra project, saying the Libra digital currency challenged the dollar. Zuckerberg said that Libra's currency reserves have the largest proportion of dollars, and the most important point of the project is to enhance the US's global financial leadership. Regarding Libra's regulatory concerns that lawmakers are worried about, Zuckerberg reiterated that Libra needs approval from all regulators, including the US Securities and Exchange Commission and the Financial Enforcement Network, and will not release Libra encryption without meeting all regulatory requirements. Currency, which will confirm this by issuing a public statement.

Then some members asked if the Libra Association would release Libra before this. Zuckerberg said that if this happens, Facebook will withdraw from the Libra Association. And he also said that if the US regulator asks Facebook to withdraw from the association, Facebook will do so. In addition, Zuckerberg also said that Facebook may become the market for Libra to sell goods in the future. The Libra Association is recruiting independent leaders, and David Marcus, the head of Facebook blockchain, is not on the recruitment list. His job is the digital wallet Calibra, not Libra.

However, according to CNBC reports, after Libra’s hearing ended, both House members of the House of Representatives expressed dissatisfaction with the lengthy testimony. Members of the House Finance Committee said they did not see what progress Zuckerberg had attended. Patrick McHenry, a senior member of the committee and a Republican from North Carolina, bluntly said: "Frankly, I am not sure what new things we have learned here." Several other members of the committee agreed. Texas Democrat Sylvia Garcia also commented on McHenry's comments, and she also questioned the separation of the two entities, Facebook and Libra.

In addition, the Libra Association has not progressed well internally. According to a recent report by the BBC, Facebook mentioned in the Libra white paper that it is expected that the founding members of the Libra Association will each inject $10 million into the project, but so far the parties have not reached an agreement. But so far, none of the 20 companies that have officially partnered with Libra and Facebook on the cryptocurrency project have promised to fund the project. Regarding the funding of member companies, the Libra Association declined to comment, and the association is not willing to disclose whether it has received funding support from other sources than Facebook.

And Jack Dorsey, CEO of social media Twitter, said that Twitter will not join the Libra Association because Libra is not based on the "native to the Internet" open standards. He explained, “Libra was born to meet the needs of certain companies, and is inconsistent with my personal beliefs and the purpose that I hope our company represents.” Dorsey further pointed out that Libra wants to achieve its financial inclusion goals. It is not necessary to create a cryptocurrency.

O2

Bakkt announces launch of regulated bitcoin futures options contract on December 9

On October 24, Bakkt announced that it will launch a regulated bitcoin futures options contract on December 9. According to a letter to the CFTC, Bakkt will also launch a market maker program to facilitate the trading of its monthly contracts. Bakkt wrote in the letter that the exchange believes that the new plan will encourage new Bakkt bitcoin (USD) monthly futures contracts to increase liquidity and trading volume.

O3

Due to the dual impact of Libra's cold and blockchain rising China's national strategic news, the cryptocurrency market situation has fluctuated sharply.

This week, Facebook CEO Zuckerberg fell during the US Congress hearing on bitcoin prices. The price of Bitcoin against the US dollar hit its lowest point since May this year. Business Times analysis said: Bitcoin's decline is a direct response to Zuckerberg's remarks, and some of his statements, such as his uncertainty about whether his company's projects can really work, have caused a decline in investor confidence in the cryptocurrency industry. After that, the price was dragged down. Bitcoin opponent Peter Schiff believes that Bitcoin has formed a bearish head and shoulders pattern, which may fall all the way to $2,000.

Subsequently, Mike Novogratz, CEO of the encryption investment bank Galaxy Digital, said that Bakkt will start the Bitcoin futures options contract on December 9. Novogratz said the launch of the new product should help reverse the bitcoin price to $10,000. In addition, the Chinese official officially stated that it is necessary to vigorously develop the blockchain industry. Bitcoin has soared to nearly 10,000 US dollars, and the entire cryptocurrency market has risen collectively. With the sharp boost in market confidence, the cryptocurrency market may continue to strengthen.

On the opening day of October 28, the Shanghai and Shenzhen stock markets opened higher in the morning, the GEM index rose 0.72%, the blockchain surged, the two cities exceeded 100 daily limit, digital currency, blockchain, electronic invoice, digital China, domestic Software and other sectors led the gains. On Google, Baidu, WeChat and other platforms, the search popularity of the word "blockchain" has shown a tens of times increase.

 

O4

Bitfinex officially responds to the arrest of Crypto Capital's president, claiming to be a victim of fraud

On October 25th, Ivan Manuel Molina Lee, president of Crypto Capital, was arrested by the Polish authorities for allegedly joining the international drug group and suspected of using Bitfinex for money laundering. In response, Bitfinex officially stated that Crypto Capital has been processing certain funds for Bitfinex and on behalf of Bitfinex for several years. During this time, Bitfinex relied on various system representations from Crypto Capital, but it turned out that these statements were wrong. In these false statements, Crypto Capital often refers to its professional banking knowledge and sound compliance licenses. Bitfinex is a victim of fraud and is clearing its position to the relevant authorities, including Poland and the United States. Any statement that Crypto Capital is laundering money or obtaining any other illegal funds at the request of Bitfinex or its customers is absolutely wrong. This event does not affect Bitfinex's funding in Poland or anywhere else. Bitfinex will continue to work to recover all funds for stakeholders and their representatives.

Earlier, according to The Block’s report on the 21st, Bitfinex’s funding freeze for nearly half a year has made new progress this week. Bitfinex's parent company, IFinex Inc., filed a search for a Discovery application to the US District Court for the Southern District of Southern California on October 18, 2019, in an attempt to recover Bitfinex's entrustment to Global Trade Solutions AG (the parent company of Crypto Capital). ) $880 million in funding. The aim is to regain the $880 million in funding that has been frozen in several countries, involving the company’s assets in Polish, Portuguese, British and US accounts.

 

O5

Bitcoin launches 50 MW mine in Rockdale, Texas

On October 21, according to official sources, Bitcoin announced that it has launched 50MW (MW) in Rockdale and Rockdale City Development Zone (MDD) in Texas. Mine. Clinton Brown, Principal Project Manager at Rockdale, Bitland, said: "We are pleased to introduce this facility, which is critical to Bittland's global expansion plan. Texas's stable and efficient energy resources for the growth of cryptocurrency mining It is important. The project is expected to create jobs in the region and plans to work with the local community to provide education and training on blockchain technology and data center operations.

O6

Telegram confirms that the TON start deadline will be extended to April 30 next year

On October 24, according to CoinDesk, Telegram officially confirmed in an email to investors that most investors agreed to postpone the launch of TON instead of returning funds. The email shows: "We are pleased to inform you that we have successfully obtained the pre-sale and the majority of investors in Phase A agree to extend the deadline for the launch of the TON network to April 30, 2020. Thank you very much for your support. ". According to Forbes, people familiar with the matter said that most of the Telegram blockchain project TON investors decided not to return the funds invested in the project, and agreed that the start of TON will be postponed until April next year.

 

O7

Trump's former campaign consultant Stephen Moore launches stable currency Frax

On October 22, according to TheBlock, former US Trump economic adviser Stephen Moore partnered with Reagan's former deputy general counsel Ralph Benko and Everipedia co-founder Sam Kazemian to launch a new stable currency called Frax. Moore will be the co-founder and chief economic officer of Frax, the company behind Stabilization, and Kazemian will be another co-founder.

According to the statement, Frax will not be anchored one-to-one with the US dollar. Instead, the reserve will be lent and interest will be generated to ensure that each Frax value is close to one dollar.

Moore said in a statement, "The central bank will soon feel the competition from private currencies such as Frax. The government's day of currency monopolization of central bankers is dying. The purpose of money is to retain its value over time, but Given the volatility of monetary values ​​and hyperinflation in many countries, we need a global currency with stable value to benefit consumers, businesses and investors.

O8

Coinbase has received nearly $2 billion in transaction fee income since its inception in 2012.

According to The Block's October 24 report, Coinbase CEO Brian Armstrong said the exchange has been profitable since 2017. Armstrong also pointed out that since its inception in 2012, Coinbase's transaction fee income has been close to $2 billion. Coinbase's valuation in the previous round of financing was $8 billion, raising funds from investors including Andreessen Horowitz, Y Combinator and Polychain Capital.

 

O9

Morgan Creek has raised $60.95 million for its second blockchain fund, public pension fund participation

On October 23, according to WRAL TechWire, digital asset management company Morgan Creek has raised $60.95 million for its second fund through 11 investors. The issuer of the fund is called Morgan Creek Blockchain Opportunities Fund II. LP", whose name indicates that the fund will invest in "blockchain opportunities."

It is reported that the fund's fundraising target is 250 million US dollars, the Fairfax County Employees' Retirement System and the Police Retirement Fund (Fairfax County's Virginia's Police Officer's, which participated in the company's first fund. Retirement System) once again participated in the investment of Morgan Creek Digital's second fund, with a total investment of 50 million US dollars. In addition, other institutional investors, including an insurance company Wakemed Health and Medical System and a university foundation, also participated in the fund.

According to PANews statistics, there were 12 project financings in the blockchain field announced last week, with a total amount of over US$94.95 million (excluding projects that have not disclosed specific investment and financing amounts), involving VCs, funds, software, trading platforms, online banking, Ticketing platform, payment, games and other fields.

O1

Zamna raises $5 million in seed funding to automate airport security using blockchain

On October 27, according to TechChurch, Zamna has raised $5 million in seed funding, led by venture capital firms LocalGlobe and Oxford Capital, including investors in SeedCamp, London Common Investment Fund (LCIF), Telefonica and some angel investors. Existing investor International Aviation Group IAG is also participating, and IAG is now its first commercial customer. The company also renamed its name from VChain Technology to Zamna. Zamna is said to use the blockchain to securely share and verify data between airlines and travel authorities to check passenger status.

O2

Bitcoin Suisse invests $3 million in trading software provider CoinRoutes

According to The Block on October 22, cryptocurrency brokerage and hosting company Bitcoin Suisse has invested $3 million in trading software provider CoinRoutes, but the company did not disclose the proportion of shares acquired.

O3

Medici Ventures leads investment blockchain startup PeerNova

According to a press release on October 22, Overstock's venture capital division, Medici Ventures, invested in blockchain startup PeerNova, which develops blockchain-based solutions for financial institutions to synchronize data across multiple systems. PeerNova said it has raised $31 million in growth funding, led by existing investor Mosaik Partners, and Medici Ventures and Intuitive Venture Partners. This round of financing has raised a total of $74 million in funds raised.

O4

Decentralized P2P encryption trading platform SIBEX raises $1.8 million in seed round financing

On October 25, according to The Block, the Swiss decentralized P2P cryptocurrency trading platform SIBEX AG has raised 1.78 million Swiss francs (about 1.8 million US dollars) in seed round financing. According to the announcement on Thursday, investors such as venture capital firm Fenbushi Capital, Swiss Stock Exchange Group SIX and blockchain investment company Accomplice VC participated in this round of financing. SIBEX said it will use its new funds to further expand its blockchain-based P2P cryptocurrency trading platform to increase institutional participation in the over-the-counter (OTC) market.

O5

Online Bank Current receives $20 million from companies such as Galaxy Digital

On October 25th, online banking Current received $20 million in investment from Galaxy Digital's EOS venture capital fund, asset management firm Wellington Management Company and CMFG Ventures, the venture capital arm of CUNA Mutual Group. It is reported that the online bank supports prepaid debit cards controlled by the application and personal checking accounts supervised by the parents.

O6

Coinplug, a national encryption startup, raised about $6.4 million from the venture capital arm of the financial institution

On October 25, according to Coindesk, South Korean bitcoin trading, wallet and payment startup Coinplug have raised 7.5 billion won (about 6.4 million US dollars) from the venture capital department of major local financial institutions. Coinplug said on Thursday that the fund came from institutions such as KB Investment, a venture capital arm of KB Financial Group, one of Korea's largest banking institutions. Coinplug said that through new equity financing, it will focus on distributed identification technology, which has already attracted great interest from the Korean government and major banks in the country.

 

O7

Blockchain game development company Enjin wins investment from Blockchain.com Ventures

On October 23, blockchain game development company Enjin officially revealed that it has received an unspecified investment from Blockchain.com Ventures, the venture capital arm of the encryption development and investment group Blockchain.

Enjin is a Singapore blockchain game developer. Enjin has more than 250,000 top gaming communities and is the owner of Enjin Coin and Enjin Coin. It is also an advanced blockchain game tool, ENJ is dedicated to the game. Entities create a complete ecosystem that enables them to create new revenue streams and new experiences for their players.

Enjin CEO Maxim Blagov believes that this collaboration will leverage Blockchain's expertise in the expertise and blockchain ecosystem to drive the real economy and ownership to the field of encryption.

O8

DFG Crypto Announces Completion of Million Dollars Investment in Polkadot Project

On October 22nd, DFG Crypto announced the completion of the multi-million dollar investment in the Polkadot project, including strategic investment in the primary market and continued increase in the secondary market. DFG Crypto is a digital currency fund of DFG.

Founded in 2015, DFG (Digital Financial Group) is a multinational group focusing on cryptocurrency and blockchain technology. With assets in excess of $550 million, the portfolio includes world-renowned industry projects such as Brave, Ledger X, and Circle.

O9

Blockchain technology company KEY GROUP announces completion of Series A financing

On October 19th, the blockchain technology company KEY GROUP announced the completion of tens of millions of A rounds of financing. The round of financing was led by HashKey Capital, and distributed capital, Fosun Group co-founder Liang Xinjun, and financial technology investment institution UVA participated in the investment. KEY GROUP includes the blockchain Chinese content community "Currency" and the blockchain autonomic identity system "MYKEY", the open source agreement KEY ID Protocol, which aims to use the blockchain technology to create content, community, investment and entertainment for users. One-stop digital living platform. This round of financing will be mainly used for platform technology development, team recruitment, user development and overseas markets. At the same time, KEY GROUP initiated the establishment of the KEY Eco-Fund, supporting excellent project parties to develop and operate blockchain applications based on the platform, and promote the blockchain technology to achieve large-scale landing.

10

American EDM combination Chainsmokers investment blockchain ticketing platform Yellowheart

On October 21st, the American EDM popular group Chainsmokers and agent Adam Alper invested in the decentralized ticketing platform YellowHeart to promote transparent ticket sales. According to reports, the YellowHeart platform was founded by music director Josh Katz, using an open blockchain platform that allows artists and venues to directly control the ticketing process, including sales in the secondary market.

11

India's digital payment service provider PhonePe completed a new round of financing

On October 24th, PhonePe announced that it has completed a new round of financing of Rs. 40.5 billion (approximately $57.19 million), invested by its Singapore parent company PhonePe Pvt Ltd. PhonePe is a mobile payment company that develops a mobile payment application based on UPI. It supports multiple languages ​​and provides users with digital wallet and payment functions. Users can recharge, pay and remit money through bank account or debit card.

12

betBEB received approximately 11 million (about US$1.56 million) RMB strategic investment from Epro Group

On October 24th, betBEB obtained a strategic investment of 9138 ETHs of approximately 11 million RMB. This time, the Epro Group will invest in betBEB strategically. Both parties will also play their own advantages, promote each other, cooperate and develop together, and seek together the blocks. The broad development prospects in the field of chain payment.

betBEB is an open, transparent, fully automatic decentralized chain management and chain game based on the Ethereum Smart Contract. Players located anywhere in the world can freely participate in financial management and games through a private key. No individual or organization can control the operation of the system or control the funds in the system. The source code of the betbeb smart contract is completely open and subject to supervision by the whole network.