On August 5, a piece of news caused another uproar in the digital currency industry. The Shanghai Headquarters of the People's Bank of China held a work conference for the second half of 2020.
The meeting requested that the monitoring and disposal of Internet financial risks such as ICO and virtual currency transactions, P2P online loans, etc. be continued. Strongly crack down on illegal activities such as cross-border gambling, telecommunications and network fraud, illegal operation of payment institutions, and unlicensed operation of payment business.
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Is a new round of regulatory storm coming?
The real situation may not be so bad.
On the contrary, regulation is good. Last time we ushered in the biggest bull market. What about this time?
In fact, this is not the first time that the People's Bank of China has proposed ICO regulation. On September 4, 2017, seven ministries and commissions including the People's Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission jointly issued the "Announcement on Preventing Financing Risks of Token Issuance", focusing on rectifying ICO chaos. .
For investors, will the emergence of regulation have a negative impact on the market?
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Bitcoin price trend after September 2017 (data source: Feixiaohao)
The real negative impact is that the market is flooded with a large number of speculation and misappropriation in the name of ICO. The new action of the People's Bank of China may be another attack after 2017. It is not only aimed at the comeback of the currency circle, but also includes P2P , gambling, payment structure violations, etc., are the governance of the overall financial environment.
Therefore, after the news of the People's Bank of China was released, many people in the industry said that this may be another good news, which is reflected in the field of virtual currencies. Bitcoin, Ethereum and other mainstream currencies have recently ushered in another round of rise, and there has not been a huge increase. fluctuation.
Not only China is regulating ICOs, digital currencies are also regulated by the U.S. Securities and Exchange Commission (SEC) in the United States. Officials in charge of cryptocurrencies and ICOs stated that Bitcoin and Ethereum are not securities, but some ICOs are securities and will be subject to Regulatory controls of the SEC and related securities laws.
In early 2018, the SEC halted AriseBank's fraudulent ICO for its "AriseCoin" cryptocurrency, which aimed to raise $1 billion and was considered one of the largest ICOs ever.
Christopher Woolard of the UK Financial Market Conduct Authority (FCA) said that unlike Chinese and American regulations, the UK has neither incorporated the Internet regulatory system nor the securities regulatory system for blockchain, but put it in a "sandbox". ” for regulation, often referred to as the “regulatory sandbox.”
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Good money drives out bad money, and the official digital currency is just around the corner
While the supervision of the virtual currency trading market continues to be strict, the official digital currency DCEP is also undergoing intensive testing. According to media reports, several state-owned people said that they are testing digital wallet applications on a large scale in Shenzhen and other places, marking the official launch of digital currency. Prepare for the test.
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DCEP test interface
In the international environment, Japan's Kyodo News recently reported that the 19 member states of the Group of Twenty (G20) and the European Union will make adjustments to pave the way for accepting digital currency payments.
A meeting of ministerial G20 finance officials in Washington this October will begin discussions around the use of digital currencies, the risks of money laundering and the challenges of using digital currencies as a form of payment. This means that before the 15th G20 Leaders’ Summit will be held in Riyadh, Saudi Arabia from November 21 to 22 this year, the G20 may recognize digital currency payments as soon as November, giving the green light to policy changes in the regulatory framework.
At the G20 finance ministers meeting in October last year, officials agreed that stablecoins such as Libra, which Facebook plans to issue, will cause serious public policy and regulatory risks, and stablecoins should not be issued until the risks are resolved. Kyodo News reported that the G20 officials' policy shift stemmed from the influence of Libra and China's plan to launch the central bank's digital currency DCEP.
China is conducting experiments to integrate DCEP with the existing financial ecosystem. The United States has begun to seriously discuss the central bank's digital currency. How the G20 should deal with digital currency has become an urgent issue.
Please pay attention to investment risks
The opinions contained in the article represent only the author's own
and does not constitute investment advice
Please pay attention to investment risks
