Blockchain compliance has always been an issue discussed by the industry. For a long time, blockchain has been associated with pyramid schemes and fraudulent projects. On the one hand, it is because the industry is not mature enough, and the formulation of relevant regulatory laws and regulations is relatively lagging behind. On the other hand, the standards of the industry itself are not perfect enough, resulting in mixed projects, making it difficult for the market to distinguish.
Under the bear market, ICO has declined, and IEO has recently become a hot spot in the market. Different from ICO, IEO refers to the act of issuing (selling) tokens directly to users of the exchange as an issuer to help projects directly raise funds. At this point, it can be understood that the exchange directly endorses the project party. Therefore, it is the key for exchanges to seek better projects for IEO.
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Image source: IBATA official website
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Start with an auditing standard: IBATA
The disclosure of financial information in the blockchain industry is very limited. One of the reasons is that there is no unified accounting standard in the industry. If a company uses digital assets such as Bitcoin and Ethereum in its operations, should it be recorded in inventory or transactional financial assets?
IBATA, the International Blockchain Fiscal and Taxation Standards Association, according to reports, is the first international blockchain fiscal and taxation NGO organization registered in the United Nations. It is a public welfare association that exists to establish blockchain digital economy fiscal and taxation standards. The main members are Finance and taxation professor scholar, blockchain industry finance and taxation expert.
In order to solve the problems mentioned above, on March 27, 2019, IBATA issued the Digital Token Accounting Standards (Draft for Comment), in which the standards for digital token tools, digital token assets, digital token liabilities, Digital token equity instruments are defined, and relevant provisions are made on how to measure and how to present and disclose.
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Secondly, there must be a financial software: BitBook Digital Bank
With the standard, who will keep the books has become a new problem. No one will do the bookkeeping manually, so a financial software that can complete the bookkeeping of blockchain assets is needed, so there isBitBooksecondary title
Finally, there is an auditing authority: BitAudit
We all know that the companys audit work needs to be completed by a third-party audit company in order to achieve a fair and just effect.BitAuditThe role of the company is an auditing company, but unlike traditional auditing companies, it can audit both legal currency and digital currency. How to do it?
In the traditional audit process, the audit company needs to transfer the companys capital status to the bank, but there is no bank transfer in the digital currency world. At this time, the Bitbook digital bank is used.
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Will there be an active audit by the project party?
So far, we have introduced the whole set of solutions from standards to accounting to auditing.
Although it is said that the entire industry is and is bound to develop towards a more legal and compliant trend, we have to think, will there really be a project party that will take the initiative to request to be audited?
Ding Yongqiang said, It is impossible for the project party to voluntarily disclose. At present, only one stablecoin project has been audited. However, due to the prevalence of IEO, exchanges are required to be more cautious in project selection. Currently, the project is negotiating cooperation with several exchanges, and it is temporarily impossible to disclose the exchange.
Regarding the amount of funds co-managed on the BitBook digital bank, Ding Yongqiang introduced, Since its launch on December 29, 2018, there have been about 3 digital currencies worth more than 100 million yuan.
I am Odaily reporter Wu Suixin (WeChat ID wsuixin12), please note your name, unit, title and reason when adding friends.
I am Odaily reporter Wu Suixin (WeChat ID wsuixin12), please note your name, unit, title and reason when adding friends.
