On November 8th, the “2019 World Blockchain Conference • Wuzhen” hosted by Babbitt was officially opened. The conference gathered more than 100 global blockchains, digital assets, AI, 5G experts and scholars, and technical geeks. Opinion leaders and founders of popular projects, with the theme of “application unbounded”, explored the application of blockchain, technology frontiers, industry trends and hot issues, and promoted blockchain technology and industrial innovation.
Li Dawei, Chairman of the Encryption Holding Group, delivered a keynote speech on "Compliance – The Future of the Exchange."
Mr. Li Dawei first reviewed the development history of Bitcoin and the exchanges in the world and China, and pointed out that China’s largest policy intervention on bitcoin transactions and exchanges has only been twice: the People’s Bank of China on December 5, 2013. The “Notice on Preventing Bitcoin Risks” issued by the ministry and the “Announcement on Preventing the Risk of Subsidy Issuance Financing” issued on September 4, 2017. The reason for the madness and proliferation of ICO in 2017 is mainly due to the lack of supervision. At present, the national policy is to use the blockchain as the core technology, and as an important breakthrough for innovation, we must vigorously support it.
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He said that instead of obtaining a national license, the country's legal system is more important for the digital currency compliance structure, and for the exchange, the bank access channel is also essential. He believes that any country will restrict and regulate bitcoin, digital currency, and exchanges. Compliance is the only way to go in the future.
The following is the full text of the speech, Babbitt finishing:
Good afternoon everyone, I am very happy that so many people have come to Wuzhen to attend the meeting. First of all, I will introduce myself. I am Li Dawei. I was lucky enough to enter the Bitcoin industry in 2013. It is not too early or too late. From 2013 to 2017, the main business of the exchanges began to invest in projects in 2018, and has invested in more than 20 blockchain projects. I am now the chairman of the Encryption Holding Group. There are three companies under our group and three businesses. I will briefly introduce them.
The first is mining. We have a cloud smart chain fund, mainly for mining, fund, cloud computing power; we have encrypted capital in the primary market, mainly for project investment, incubation; in the secondary market, there are gravitational wave quantification teams, mainly to do quantitative transactions, Market value management and market maker services for liquidity of transactions.
The theme I shared today is "Compliance – The Future of Exchanges." Let's review history and let's take a look at the past and present of the exchange. Everyone knows that the Bitcoin white paper came out in 2008. The first bitcoin was born in 2019. The world's first important exchange was established in Japan in 2010. The first exchange in China was established in 2012, in Shanghai. After that, there were exchanges such as OK and Firecoin. Between 2012 and 2013, domestic policies did not interfere, restrict or supervise Bitcoin or the exchange. The first policy began to interfere with Bitcoin on December 5, 2013, when five ministries and commissions issued a notice "Notice on the Prevention of Bitcoin Risk". There is a very clear sentence in the "Notice": " Chinese citizens can freely trade Bitcoin at their own risk, which means that in China, it is legal for ordinary people to buy and sell Bitcoin, so it is illegal to listen to others to buy Bitcoin. This is the country has introduced relevant laws, buying and selling bitcoin is legal.
After this big policy intervention is the September 4, 2017 "Announcement on Preventing the Risk of Subsidy Issuance Financing". Basically, everyone knows that it is called the 9.4 policy. The 9.4 policy denied two things at the time: First, the issuance of token financing, ICO is illegal in the country; Second, the domestic bitcoin trading platform is required to complete the cleanup and retreat and end the operation. Of course, in the "Announcement", it can be said that almost all domestic exchanges have been cleared and retired, and all operations have been closed. After that, the overseas development of the China Exchange has been opened. Some exchanges have gone overseas to register companies and conduct transactions. The business. These two are by far the largest policy interventions in bitcoin transactions and exchanges.
Why do I say that we have been one step away from regulation? Because you may only know the policies of 2013, including the 2017 policy, in fact, in June of 2017, of course, the People’s Bank of China has been investigating for about half a year before, and from December 2016, it was the third largest exchange in the country to conduct research. By June 2017, there was a strong signal that the state began to regulate, restrict, and even supervise the exchange. At that time, a draft regulation was revealed, and that thing was real. . Because the central bank asked us several head exchanges, including myself, and repeated investigations several times, we also feedback our regulatory opinions many times. From December 2016 to December 2017, I wrote a report to the Bank of China and the Financial Office every week, and wrote it for a whole year.
Why is there such a big policy for 2017 9.4? Everyone knows that from June to August 2017, it was the most insane and most influential time of ICO. It can be said that this kind of flooding and illegality of the ICO led to the release of the 9.4 policy in 2017. So it can be said that our bitcoin exchanges are closed, a large part of the reason is caused by ICO, so ICO is a few mice, a bad soup.
The latest policy, the country has used the blockchain as a core technology, as an important breakthrough in innovation, but also to vigorously support blockchain technology, but this policy does not mention bitcoin and exchanges, but I believe that any country will continue Binding and specification of Bitcoin, digital currency, and exchanges. So I think all exchanges, no matter which country you are in, compliance is the only way to go in the future.
There is a saying, "You send me a trading license, I won't want it." Do you know who said it? Yan Xianping said, "You will send me bitcoin, I won't want it." You sent me a trading license, and I won't want it, but this is what I said. Why don't I trade a license? First, there is no free lunch in the world. Secondly, what is the license for me, what is the Philippines, Cambodia, Mongolia, and the so-called licenses that do not know what country, I think there is no practical significance. Because there is no license supported by a legal framework, it does not make any sense. Everyone knows that the exchange's license is usually issued by the SEC, which is the SFC of each country. It is very difficult for you to obtain a trading license of the Securities and Futures Commission. I used to apply for a license in a small country. I have repeatedly submitted the materials to nearly 200 pages before and after, and I submitted them to be rejected and then resubmitted. I have not applied for it for half a year. It will review your company structure, executives, finances, etc. before and after, and check you according to the standards of the securities industry practitioners. Also review your security, whether there is any third-party assessment agency to recognize you. It also involves how to do things about asset custody, what should not be done, and the constraints on taxation. So a true compliance license, first of all, is that this country has a legal framework. With this legal framework to constrain what can and cannot be done, give you a license on this basis. This is a valid photo. . If it’s just a license from someone who gives you a country, I won’t want it. I suggest that you don’t want it. Instead of having a shell license, it is better to have a bank's legal currency interface, because it can open the channel for bank deposits and withdrawals. Because the French currency interface is very useful, users can make convenient transactions. Of course, the trading license is very important, but the more important stable currency interface, this is the two problems to be solved.
Later, we will introduce ZBX, which is regulated by the Malta Monetary Authority and has a legally licensed regulatory platform for compliance with digital assets.
ZBX tried to create a bridge between the blockchain world and the traditional financial legal currency channel. First, it got the regulatory license from Malta. Second, it opened the channel for the deposits and withdrawals that I just mentioned.
The advantages of ZBX are obvious. The first is the regulations. Why choose Malta? In fact, our company was first registered in Switzerland in 2018. The local currency is also very friendly. But since the beginning of last year, the Maltese country passed the "Virtual Currency Act", which is the national legal system that has formed a digital currency and a bitcoin. A complete compliance structure, so we decided to go to Malta from Switzerland. ZBX may be a little different from other overseas exchanges. Most of the other overseas exchanges go to sea after 9.4, which is the overseas exchange where the Chinese exchange is established overseas, and ZBX is registered from the company to the line. All are done overseas. Maybe everyone doesn't know about ZBX. It is true that ZBX has hardly promoted in the Chinese market for more than a year. The second is the bank interface. We have reached a strategic cooperation with a Swiss bank. Yesterday, we also released official news in Malta. Major European media have also begun to report that we have obtained a series of legal currency access channels, represented by the euro, which can provide companies and users with a compliant legal currency channel.
In addition to being a compliant digital asset trading platform, ZBX also has the feature that we can trade STO assets, which I will discuss in detail later.
The traditional digital currency trading is not mentioned, and it is similar to other trading platforms, focusing on STO. Everyone knows that there are several obstacles to doing STO: The first obstacle is regulation. At present, only three countries in the world allow or support STO. The first is the United States, and some states in the United States allow STO to be certified. The second is Singapore. Singapore has a regulatory sandbox that is allowed; the third country is Malta, and the government also provides a series of regulatory frameworks for STO. How to send STO? First you find a place where the policy supports the issuance of STO, such as Malta, and then we will audit your assets. Who will complete the audit? We are looking for a well-known accounting firm, KPMG, to audit the issuer's asset package. The audit process and the listing process are similar to the SME IPO process. The process is similar, but its terms are definitely not the same. After the issuance of STO, the funds you raised were not taken away by the project. We have a Swiss bank that provides banking supervision and fund custody, so that we can guarantee the legal and legal issuance of STO.
This is our main partner in the world, the first is the Swiss bank. This bank, you only need to open an account in its bank, there are now two or three different kinds of legal currency in its bank account, such as the euro, pound, dollar, yen, the bank is supported.
Nortide has created Europe's first bitcoin, Ethereum's index fund, a $1 billion organization that manages assets, providing ZBX with legal currency.
Safello is a technology company invested by our platform. Through a bank interface, as long as you hold a credit card in Europe and hold a credit card issued by a European bank, you can buy Bitcoin in 20 seconds, or Sell your bitcoin in 20 seconds and withdraw it to your users. Of course this is only for European users.
Then ZB, ZB is our technology provider. It has been operating safely for 7 years in China and has a good security solution.
Let's talk about our stable currency trading market, because there are more and more stable coins. This is our trading profile. Just now, in addition to providing 23 mainstream legal currencies, UBS has issued 16 stable digital currencies based on Euro, British Pound, US Dollar and Swiss Franc. The BRZ (Brazilian Digital Token) company is a Brazilian company that has issued a stable digital currency based on the Brazilian Lille. On the ZBX trading platform, we have opened the BRZ transaction, and we will continue to open the euro's stable currency. .
The one just mentioned may be relatively empty, and I will give you a brief demonstration. DUKASCOPY Bank, just mentioned, you don't have to go to Europe now, and you don't have to go to the bank counter to open an account. You can get the account of DUKASCOPY, a European bank, after you open an account on our digital currency platform. At the same time, after you open a bank account, the bank also sends out the currency, and you can also get the bank's pass-through candy. The registration process is very simple. As long as you have a Chinese passport, you can register with ZBX. Once you have registered, you can open a Swiss bank account. If you don't understand, we offer a 24-hour Chinese service.
The opening process is very simple, so you can log in and try it later. If you need to open a Swiss bank account, you can try it. After opening an account, after you get a Swiss bank account, you can bind to the ZBX platform account. Our ZBX platform can transfer funds with the Swiss bank account. This is the effect of the ZBX account and the DUKASCOPY account. Look inside to show you how many euros, Swiss francs you have, and you can switch in and out. DUKASCOPY This is the card that the bank gives to the CEO. If you want this card, after you open the account, you will send him another 18 dollars. It will send the physical card to you. This card is the most traditional borrowing in Europe. Card.
Safello can experience Bitcoin in Euros for 20 seconds.
This is the report of the overseas media to us, because we are the first time to promote in China. In fact, in Europe, many well-known media have reported. On the left is our CEO, he is a Maltese, he is also a financial veteran in Europe. Including our CMO, our CMO is also very powerful. He has 10 years of entrepreneurial experience in Europe and has successfully started a business. Nine companies are listed. And Jimmy is our founder, this is some of the videos he interviewed on a TV station in South Korea, including Malta TV. Video files can be seen in overseas media. Just in Malta yesterday, ZBX had an event with the Ministry of Finance of Malta, including the Minister of Commerce and the Minister of Finance, who visited the ZBX Malta office.
ZBX is a European exchange that has already taken pictures in Malta. Second, it has a euro-economy entry and exit channel. Third, it can do STO asset securitization transactions.
My sharing is over, thank you very much!