Opinion: Blockchain development requires industry self-regulation and market supervision, applying technology to the real world and creating value

Overview Overview

Since October 18, 2019, after the 18th collective study of the Political Bureau of the Central Committee, governments at all levels and various organizations have set off a wave of in-depth study of the blockchain. But the blockchain is still in the early stages of development, and like the early stages of other new technologies, projects are mixed. Effective market supervision and industry self-discipline can benefit the development of the overall market, applying blockchain technology to the real world and creating value.

Report report

Industry chaos

From November 2008, Nakamoto published a famous paper "Bitcoin: A Peer-to-Peer Electronic Cash System", which officially opened the era of Bitcoin. Blockchain technology will change the world and will create great value is a general consensus. But the irony is to search for "blockchain" and "coin circle" respectively, and the result is a huge contrast. This also reflects the fact that the industry still lacks effective standards and constraints, and the current projects are mixed. Search for "coin circle", "funds", "traps", etc. are placed at the top of the search results page. "Leek" has even become a terminology for this industry. "Cutting vegetables" and "running the road" have become the norm for each project side. The “blockchain” that enables reliable transactions in untrusted environments has become a centralized fraud tool. The current state of confusion has also made the industry very slow. After 10 years of development, there is still a lack of effective blockchain projects that are applied to the real world. A healthy environment can make the industry thrive. Market supervision and industry self-discipline are important guarantees for a healthy environment.

On November 18, 2019, CCTV's "Focus Interview" program dedicated a program titled "The blockchain is not a withdrawal chain." In the program, statistics were carried out on the pyramid scheme and the cut amaranth project, with 102 pyramids and 755 tokens. The essence of the pyramid currency and the zero-counter currency was revealed in the program. This shows that the chaos in the current blockchain industry has caused the thinking and attention of practitioners and regulators. As an authoritative media, the program emphasizes the need to implement the rule of law network into blockchain management. The development of blockchain requires rules and strong supervision. The emergence of emerging industries and new technologies is always advancing in the process of exploration. Only within a reasonable regulatory framework can blockchain technology become a tool for improving productivity rather than a criminal means of becoming a criminal.

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Market supervision and industry self-discipline

A healthy environment can make the industry flourish, effective market supervision and industry self-discipline are essential, they are an important part of a healthy environment. The standard consensus uses professional knowledge to analyze and evaluate relevant blockchain projects and conduct in-depth industry research to help many readers understand blockchain projects and technologies. Reveal project risks for readers and provide risk warnings for high-risk projects.

Since 2013, China's regulation of blockchain and related policies have been continuously introduced. The main documents are as follows:

• December 2013, China Banking Regulatory Commission, Ministry of Industry and Information Technology of the People's Bank of China, China Securities Regulatory Commission, China Insurance Regulatory Commission, Notice on Preventing Bitcoin Risks
• On September 4, 2017, the Central Bank of China's Central Bank of China, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Securities Regulatory Commission, the "Notice on Preventing the Risk of Subsidy Issuance Financing"
• On January 2, 2018, the Office of the Leading Group Office of the Internet Financial Risk Special Remediation Work (Renovation Letter (2018) No. 2) [main content]: Orderly exited the “mining business”.
• On August 24, 2018, the Bank of China Insurance Regulatory Commission, the Central Network Information Office, the Ministry of Public Security, the People's Bank of China, and the General Administration of Market Supervision issued a risk warning on the prevention of illegal fund raising in the name of “virtual currency” and “blockchain”.
• In September 2018, the Shanghai Headquarters of the People's Bank of China released the “Persistently Preventing ICO and Virtual Currency Trading Risks”

History and future trends

New technologies are being applied to real-world production, often resulting in tremendous productivity gains. But this is often accompanied by the unevenness of the various participants. Market supervision is even more important because of the immature and uneven development in the early stages of development. Market surveillance provides a healthy external environment for the industry. In a healthy environment, the blockchain industry can flourish. Otherwise, like the result of searching for the “coin circle”, it will lead to the overall shrinkage of the blockchain industry. Like the financial and IT industries we are familiar with, the development of the blockchain industry will gradually mature under the constraints of various regulatory policies, bringing huge productivity leap to various industries.

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