Get ready, the blockchain future is here

Yesterday, November 6th, there were three major news in the industry.

1. "Mining" is no longer an "elimination industry"

On November 6, the China Government Network released the "Industrial Structure Adjustment Guidance Catalog (2019 Edition)", which was reviewed and approved at the second committee meeting on August 27, 2019. It is hereby promulgated and will come into force on January 1, 2020 . The "Industrial Structure Adjustment Guidance Catalog (2011 Edition) (Amendment)" shall be abolished at the same time.

In this latest guidance catalog, the "virtual currency mining" industry that was eliminated in the first consultation draft was deleted.

In my country, digital currency mining is mainly concentrated in economically backward areas such as Sichuan, Yunnan, Inner Mongolia, and Xinjiang. Those areas are rich in hydropower and thermal power resources and cheap, which has a key cost advantage for mining, a high-energy-consuming industry, and thus attracts a large number of miners to deploy.

Previously, digital currency mining was most criticized for its high energy consumption and environmental pollution, which must be improved in the future development of mining. But on the other hand, mining by miners has made a positive contribution to the local economy and taxation, and it has also stimulated the development of my country's mining machine chip industry. The development of the chip industry plays a decisive role in my country's occupation of the commanding heights of global science and technology.

Among the three major mining machine manufacturers, Bitmain and Canaan have not only been deeply involved in the research and development of mining machine chips, but also made great progress in the research and development of artificial intelligence chips. It is hard to imagine them achieving such results without the booming mining industry.

Now the day has finally arrived for the miners to mine in the open.

2. Suggestions from the report of the Shenzhen People's Congress: promote digital currency pilots and study the feasibility of issuance

On November 6, the Shenzhen Municipal People's Congress released a research report on promoting the construction of the Qianhai Guangdong-Hong Kong-Macao Greater Bay Area Cooperation Demonstration Zone. According to the report, it is necessary for Shenzhen to conduct in-depth research on digital currency, promote the pilot of digital currency, and study the feasibility and main content of digital currency issuance.

The report "suggests to study and formulate the "Shenzhen Special Economic Zone Digital Currency Promotion Regulations" or the normative documents of the Qianhai Free Trade Zone, from the definition and connotation of digital currency, the development goals of digital currency, the regulatory agencies of digital currency, the issuance system and technology of digital currency Research on the feasibility and main content of digital currency issuance in terms of route, digital currency operating system, digital currency exchange mechanism, digital currency preservation and use, digital currency and currency coordinated operation, and legal responsibilities.

The most critical word in this passage is "digital currency exchange mechanism", which in my opinion refers to digital currency exchanges.

After 1994, the exchange industry as a whole was restricted, supervised and attacked by policies. Domestic exchanges either closed down or went overseas collectively.

The proposal put forward by the Shenzhen People's Congress is now a prelude to the loosening of policies and further loosening in the future. With the further easing of policies, I believe that overseas exchanges will take some action and gradually move closer to China.

In fact, just last week, Binance opened an office in China, which caused speculation in the circle. In my opinion, this is the real action taken by Binance on the policy shift.

3. The Hong Kong Securities Regulatory Commission issued a position paper on the regulation of virtual asset trading platforms

On November 6, the Hong Kong Securities Regulatory Commission's position paper on the supervision of virtual asset trading platforms was published in full online.

The full text of this position paper expounds the position and regulatory attitude of the Hong Kong Securities Regulatory Commission on digital currency trading platforms from various aspects. In general, there are two points:

One is that the Hong Kong Securities Regulatory Commission will issue licenses to trading platforms that include the sale and purchase of "security tokens" in compliance with regulatory regulations, allowing them to operate legally under the supervision of the Securities Regulatory Commission.

Second, the Hong Kong Securities Regulatory Commission will not issue licenses to trading platforms that only buy and sell "non-security tokens".

To put these two points in simpler terms, the Hong Kong Securities Regulatory Commission will judge existing tokens, and all trading platforms that belong to security tokens will be subject to supervision; if they are not security tokens, they will not be subject to the Securities Regulatory Commission for the time being. It will be supervised, and traders will consider legal risks by themselves.

The Hong Kong Securities Regulatory Commission also stated that: Bitcoin is a non-security token, so according to this position paper, if a platform that only trades Bitcoin, the risk is borne by the trader.

This position paper of the Hong Kong Securities Regulatory Commission is the most detailed, thorough, and feasible document on the supervision of digital currency exchange platforms in the entire Greater China region so far.

Its significance does not lie in the specific content of the document, but in formally specifying how the Hong Kong government will supervise the future development of digital currency trading platforms in Hong Kong and how to supervise, giving a clear direction and specific implementation methods.This clears the policy barriers for formal funds to enter digital currency investment.

4. The far-reaching significance of the three big news

After 94 in 2017, my country's digital currency policy has been tightened in an all-round way: the discussion of digital currency has been strictly restricted, digital currency mining has been included in the eliminated industry, and digital currency exchanges have gone overseas. The atmosphere in the entire industry and circle was extremely depressed.

After the high-level collective study at the end of last month, the entire wind direction and atmosphere were completely reversed. At that time, I guessed in the series of articles that the policy on digital currency and digital currency fairs would change. This change will not happen overnight, but it will gradually appear.

These three heavyweights on November 6th are clear signs of change.The lifting of the ban on mining shows that the high-level defaults that activities related to digital currency are legal, which starts from the bottom of the entire industrial chain;

The Shenzhen People's Congress suggested in-depth research on digital currency, which is to further loosen the wind and wind for the future from the perspective of attitude and policy;

The Hong Kong Securities Regulatory Commission's position paper is a bold attempt to explore the future development of digital currency exchanges.

The actions of the Hong Kong Securities Regulatory Commission will directly have a chain reaction. The domestic exchanges that have left and even the overseas exchanges are very likely to log in to Hong Kong one after another to test the waters.

This bold attempt by the Hong Kong Securities Regulatory Commission is not only of great significance to Hong Kong, but also has important enlightenment and reference significance for mainland China. Once Hong Kong's exploration and practice have achieved good results, mainland China will most likely learn from relevant experience and make major adjustments to the exchange's policies.

Every participant and investor who is interested in this industry must now pay close attention to policy trends!