Xinhua News Agency: Resolutely crack down on the "coupling evil roads" and guide the application of blockchains to "open the main entrance"

Xinhua News Agency reporter Wu Yu

Original: http://www.xinhuanet.com/2019-11/22/c_1125264698.htm

Recently, activities in some areas of virtual currency have re-emerged, and many institutions are engaged in illegal activities such as pyramid schemes and fraud in the blockchain. In this regard, the relevant departments have taken active actions to “open the main entrance” while “blocking the evil road”, on the one hand, to increase the crackdown on “fried coins”, and on the other hand to guide the blockchain to explore and apply in the financial field, and to guide them. It plays a more beneficial role in solving the difficulties and pain points of the development of the real economy.

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"Frozen coins" activities resurgence and supervision

Recently, many people who have participated in the "fried coins" have found that the long-lost currency circle has begun to "boiling", and the nerves that are affecting them are the soaring prices of bitcoin and other virtual currencies. At one time, it has soared more than 40%, and the price has risen above the $10,000 mark. The skyrocketing decline of Bitcoin has caused some people to smell the opportunity of speculation, and even more, they are cheating on the guise of the blockchain.

On the 21st, the relevant regulatory authorities in Shenzhen issued a risk warning against the prevention of virtual currency speculation. Recently, with the promotion and promotion of blockchain technology, virtual currency speculation has risen, and some illegal activities have shown signs of resurgence. Previously, Shanghai, Guangdong Dongguan and many other places also issued relevant risk tips.

The risk warnings issued by many places clearly indicate that some institutions absorb public funds by issuing so-called “virtual currency”, “virtual assets” and “digital assets”, infringing on the legitimate rights and interests of the public. Such activities are not really based on blockchain technology, but rather the concept of speculative blockchain illegal fundraising, pyramid schemes, and fraud.

The reporter learned from the relevant departments that at present, the local regulatory authorities are conducting a comprehensive investigation of the “fried coins” activities of the localities, resolutely playing early and playing small, and outcropping. At the same time, the financial supervision department also cooperated with the China Internet Finance Association to timely dispose of the new virtual currency trading venues, the first token issuing (ICO) activities, and the overseas trading currency platform. In addition, regulators have increased supervision of commercial banks and third-party payment institutions.

Since 2019, the relevant departments have handled more than 200 domestic and foreign virtual currency trading platforms, closed nearly 10,000 related payment accounts, and closed nearly 300 WeChat marketing publicity procedures and public accounts.

Relevant persons of the People's Bank of China said that China's virtual currency transactions still maintain a severe situation and the policy orientation has never changed. ICO is essentially an unauthorised illegal public financing. It is suspected of illegally selling tokens, illegally issuing securities, and illegal fund-raising activities such as illegal fund-raising, financial fraud, pyramid schemes, etc. China prohibits all types of token financing activities.

Blockchain is not equal to virtual currency guiding blockchain reasonable exploration

Digital cryptocurrency is based on blockchain technology, but blockchain technology does not mean speculating virtual currency. Industry experts said that it is necessary to attach great importance to the application of blockchain in the financial sector, so that it can play a role in solving the difficulties and pain points of financial services.

Dong Xiwei, a special researcher at the National Finance and Development Laboratory, said that due to the characteristics of the technology itself, the blockchain has significant advantages in registration, payment settlement, exchange and transmission in financial asset transactions, and has gradually begun to be applied in the financial sector in recent years. In some business scenarios such as supply chain finance and cross-border payment, the blockchain has gradually moved from concept verification to business practice.

Recently, the National Internet Information Office released the second batch of domestic blockchain information service names and filing numbers, including ICBC's blockchain-based financial services, Ping An Bank's SAS blockchain platform, and UnionPay's global quick-receiving funds. The tracking platform and the Jiangsu Chain Bank's blockchain IoT movable property pledge financing platform were all filed.

According to industry insiders, by using the characteristics of blockchain multi-party information sharing, through the integration of logistics, information flow, capital flow and other related information, financial institutions can better understand the company's financing needs, solvency, credit risk and so on. In addition, for the problems of high handling fees and long process in the cross-border payment field, some technology companies are also exploring the use of blockchain technology to build a peer-to-peer clearing network.

“However, the application of blockchain in the financial sector is not only a technical issue, but may also involve legal system issues.” A person close to the central bank said that blockchain technology innovation itself is a good thing, but the regulatory authorities need to closely observe Whether the financial activity process set up by the blockchain is appropriate and whether it conflicts with current financial regulations.

Blockchain technology needs to be matured in the financial sector

Insiders pointed out that the current exploration of the blockchain in the financial sector is still at an early stage, and some applications still face difficulties and need to be promoted steadily.

First of all, the authenticity of the data before the "winding" is difficult to guarantee. “The blockchain can ensure that the information is true, but it is only after the 'winding up'.” Zhao Wei, deputy secretary-general of the Beijing Network Law Research Association, believes that the authenticity of a large number of blockchain data depends on the centralization of credibility. Third-party information intermediary to verify the truth.

Second, the blockchain operates at a lower efficiency. Experts pointed out that at present, countries have relatively efficient institutional arrangements in the field of large-value and small-value liquidation, and the operational efficiency of blockchains is not suitable for some high-frequency payment scenarios. Bitcoin now supports up to 7 transactions per second, which is difficult to meet payment requirements compared to the “double eleven” inter-agency payment of over 71,500 transactions per second.

In addition, blockchain applications still have shortcomings and problems in security, stability, privacy protection, liability identification, compliance risk, etc. The underlying technology development needs to be mature.

Relevant persons of the People's Bank of China said that in the next step, the regulatory authorities should strengthen the blockchain technical specifications and guidance, and guide the blockchain technology in promoting data sharing, optimizing business processes, reducing operating costs, promoting synergy efficiency, and establishing a trusted system. To play a bigger role.

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