Spring in a bear market: China and the United States send friendly signals to cryptocurrencies at the same time, but asset security is still the focus

Author | Murphy '04, Editor | Very White

With BTC plummeting and BCH facing a bifurcation, the policy level has finally brought several warm signals to the blockchain industry:

1. New York State issued the 14th cryptocurrency license;

2. The formulation of domestic security standards for the blockchain industry is on the agenda;

3. Hong Kong launched a sandbox plan to guide cryptocurrencies to compliance.

What message does this triple message convey? The blockchain chief (ID: cmcmbc) believes that the acceptance and development of cryptocurrencies around the world will be a constant trend, but at present, asset security is still the most concerned issue for regulators in various countries.

United States: Reform regulatory methods to reduce the burden on start-up companies

On November 14, the New York Department of Financial Services issued the state's 14th cryptocurrency license to New York Digital Investment Group (NYDIG). With this license, NYDIG will be able to provide secure custody and transaction execution services for cryptocurrencies. .

The cryptocurrency policy in the United States is inherently complicated, and the main reason is the conflict between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). At the state level, New York State is also the most controversial.

New York State implements the "BitLicense" policy, but the cost of applying for this license is not small. The application fee alone needs 5,000 US dollars, plus various labor expenses such as attorney fees. Up to $50,000, and the application is not necessarily successful. For ordinary start-up companies, this is simply making things difficult on purpose.

As a result, New York State has also been seeking reforms. Before the 14th license was issued, the state legislature was already discussing an alternative policy. The main change of this policy is: from handling fee as the main threshold to passing security audit as the main threshold. If this policy is passed, companies that want to engage in cryptocurrency business will no longer have to bear high application fees, but must accept regular audits by third-party agencies.

In addition, Kim Ron, a proponent of cryptocurrency and member of the New York State Assembly, also suggested in a report that in addition to meeting technical security requirements, cryptocurrency exchanges must also apply for deposit insurance for part of investors’ property.

This move by New York State shows that, at least in some parts of the United States, the development of cryptocurrencies has been encouraged, but asset security is still the most concerned point of regulators.

China: Mainland sets industry safety standards

Hong Kong is starting to open up

In terms of promoting cryptocurrency compliance, both the mainland and Hong Kong have recently made moves.

The first is Hong Kong’s sandbox plan, which is to explore whether virtual asset trading platforms are suitable for regulation in a “safe environment” that limits time, space, and scope of investors, and to observe platform operators who intend to engage in related businesses in the sandbox. operation in the environment.

In other words, it is an investigation by the regulatory authorities on digital asset transactions in a limited environment. No matter what the result is, this can be seen as a rare friendly signal released by the country for cryptocurrency transactions.

On the other hand, good news also came from the 2018 Digital Asset Security Summit Forum held in the Mainland on November 13. People from the regulatory and academic circles are concerned about the development of security standards for the blockchain industry. Wu Zhen, head of the Internet Financial Supervision Technical Support Special Team of the National Internet Emergency Center, said that the industry standard "Blockchain Platform Security Technical Requirements" is currently being established and drafted .

The standardization of blockchain technology security is indeed conducive to solving the problem of frequent security incidents on cryptocurrency trading platforms. According to a blockchain security report recently released by Tencent Security, from 2013 to the first half of 2018, a total of 54 security incidents occurred in the digital currency market. In the first half of this year alone, the blockchain field lost more than 2.7 billion due to security issues. Dollar. The reasons for the losses mainly include technical means attacks, self-stealing of exchanges, etc.

Reference article:

Reference article:

Mars Finance: Hong Kong’s sandbox plan sets a precedent for global digital asset compliance transactions, and the country may be on the right track

Beijing News: Hackers attack the "hardest hit area"? Blockchain platform security technical standards are being drafted

New York Legislator Proposes BitLicense Alternative for Cryptocurrency Users

The Future of Bitcoin in NY