Babbitt column | Xiao Wei: The formal blockchain project, where is the legal boundary?

We are pleased to see that the recent blockchain seminars have gradually become more substantive, regular military entry, banking blockchain projects are strong; logistics blockchain projects are blooming. Compared with the “coin circle” driving the “chain circle” in the past few years, the current momentum is obviously “healthy”. However, some recent documents also let us see that the authorities are alert to the blockchain to be easily used by criminals, such as November 18 The Office of the Inter-Ministerial Joint Meeting of the China Banking Regulatory Commission on Disposal of Illegal Fundraising sent a letter prompting the prevention of illegal fundraising risks under the name of “blockchain”, reminding some criminals to take the opportunity to speculate on the concept of “blockchain” to so-called “virtual currency”. "Illegal absorption of public funds, etc., but these projects have nothing to do with blockchain technology. Coincidentally, on November 14, Shanghai also issued the "Notice on the Implementation of the Renovation of Virtual Currency Exchanges." Today, we will study and discuss the formal blockchain project and the legal boundary of its behavior.

Article context:

1. Is the “chain of alliances” regulated by the Regulations on the Management of Blockchain Information Services;

2. Blockchain project compliance, which details are easy to ignore;

3. “Blockchain” is not a “cash chain” and beware of illegal public financing.

"Information service" is the catcher

On February 15, 2019, the State Internet Information Office officially promulgated the "Regulations on the Management of Blockchain Information Services" (referred to as the blockchain information regulations). So far, China's normative nature of blockchain technology has been applied to specific projects. There are very few legal documents, and this regulation is the code of conduct that the current blockchain project party should abide by. We have seen the blockchain information regulations. The upper-level method is the "Network Security Law", "Internet Information Service Management Regulations", "Notice of the State Council on Authorizing the National Internet Information Office to be responsible for the management of Internet information content." The legal level of information is not high and may be affected or covered by higher-level regulations or laws and regulations in the future. The regulatory object specified by the blockchain information: First, the “blockchain information service provider” is the main body or node that provides the blockchain information service to the public, and the organization that provides technical support for the blockchain information service. Or organization; second, "blockchain information service users" refers to organizations or individuals that use blockchain information services. Whether to exclude the "chain of alliances" here is worth exploring. If blockchain technology is used only within a group or between bank outlets, will it be identified as a “blockchain information service provider”, and Yan Jie believes that: according to the textual interpretation, blockchain information service provides It refers only to the main body or node that provides the blockchain information service to the public, and the alliance chain actually provides blockchain services for “internal customers”. In this sense, the blockchain project of banks and other institutions Not subject to this regulation.

However, according to the idea of ​​“penetrating” supervision, it may be necessary to understand “to the public” more broadly. Finally, the products or services exported by banks and other institutions should be oriented to the general public, and the services they provide are also A public good, then, at this time, the document will regulate the "chain of alliances." ( My sister recognizes the first understanding, the alliance chain is not regulated by this regulation )

Easy to ignore details

The recent popularity of blockchain technology projects has also spawned the enthusiasm of the various supervisors, and there have been rumors or standard launches. The provinces and municipalities also have opinions for promoting development. However, we should be clear that we should act in accordance with the law and must respect normative laws. The document gives us the regulations: The State Internet Information Office is responsible for the supervision and enforcement of the national blockchain information service; the Internet Information Office of the province, autonomous region, and municipality directly under the Central Government is responsible for the supervision and management of the blockchain information service within its administrative area. In addition, the blockchain information service provider shall, in accordance with the provisions of the “Network Security Law of the People's Republic of China”, conduct real identity based on the organization code, identity card number or mobile phone number for the user of the blockchain information service. For information authentication , if the user does not perform real identity authentication, the blockchain information service provider shall not provide related services. In addition, the relevant time and date are also important. The blockchain information service provider shall perform the filing formalities within ten working days from the date of providing the service. If the relevant content is changed, the change procedure shall be completed within five working days from the date of the change, and the termination of the service shall be terminated. The service will be cancelled 30 working days before the service.

Beware of illegal public financing

The Announcement on the Prevention of the Risk of Subsidy Issuance Financing clarifies the nature of ICO (the first token issue).

“Token issuance financing refers to the illegal sale and circulation of tokens through tokens, and the so-called virtual currency such as bitcoin and Ethereum is raised by investors. It is essentially an unauthorised illegal public financing, suspected of illegal sale. Coupon, illegal issuance of securities, and illegal criminal activities such as illegal fundraising, financial fraud, pyramid schemes, etc."

At the same time, the document also pointed out the risks of ICO.

“Token financing and trading have multiple risks, including false asset risk, business failure risk, investment speculation risk, etc., investors must bear the investment risk.”

It can be seen that the definition of ICO in China is an illegal public financing behavior, not only the operators are illegal, but also the investors have huge risks .

In conjunction with the letter from the Yin Baojian mentioned at the beginning of the article and the recent Shanghai Notice on the Implementation of the Renovation of Virtual Currency Exchanges, the “blockchain” is not equal to the “withdrawal chain” . ICO and other illegal public financing activities are still Prohibited, the promotion of blockchain is not equal to the resurgence of ICO.