The summary statement details the government’s official definitions of pending blockchain regulations. Publicly announced explanations may seem relatively harmless or truly prudent, but such official explanations are an obvious attempt to suppress rather than develop decentralized technologies. Even a basic, preliminary investigation statement highlights what could be generously labeled as controversial logic.
“China should release official standards on blockchain technology next year, with one Xinhua official saying it will“ give the industry some guidance ”on that technology.
Li Ming, director of the Blockchain Research Office at the Ministry of Industry and Information Technology (MIIT), told Xinhua’s Economic Information Diary that work has already begun on shaping the standards. Lee, however, made it clear that while the standards would provide some guidance to blockchain developers, authorities did not expect official guidance to “quickly advance the development” of the industry. Despite efforts to curb the financial risks associated with cryptocurrencies and the initial supply of coins, the Chinese government is seeking to show its support for blockchain development. China was the world’s largest source of blockchain patents in 2017, while last September the blockchain research center was opened by the Chinese Academy of Information and Communication Technology, a research institution under MIIT.
The new standards being developed by the Blockchain Research Bureau will include guidelines for implementing blockchain in terms of business, information security and reliability, Li told Xinhua. Despite the exciting potential blockchain environment, the technology remains in its infancy. Without clear regulations, security problems caused a loss of nearly $ 2.9 billion worldwide between 2011 and 2018, according to the Baimaohui Security Research Center, an Internet security expert who worked with Alibab and Huawei.
In the last two years alone, $ 1.9 billion has been lost due to blockchain security issues, according to Baimaohui. Not only are leading Chinese technology companies and banks applying for blockchain patents and exploring how technology can improve services and increase public confidence in supply chains, the Chinese Ministry of Public Security is also studying how to apply that technology in terms of data storage. Earlier this week, data from China’s Intellectual Property Office showed that the Ministry of Public Security has filed a patent application for a blockchain system that will securely and transparently store immutable data in the cloud. Such a system could be used and shared by the police throughout the country, allowing for the rapid exchange of data between different agencies. (CGTN) “
To begin with, let us not forget the differentiation of decentralized capacities in relation to centralized services. The regionally authorized service naturally adheres to geographically determined legislation. For example, an international fast food chain may, in some European countries, sell alcoholic beverages without a prescription, while the same operator is not normally allowed to do so in North America. This variation is possible due to the localized use of the service. Having “official” guidelines for decentralized capabilities would mean imagining access to and use of decentralized services by regional or under the same legislation. Maybe not. It is decentralized.
Second, the U.S. Office of Accountability (GAO) calculated that the 2008 financial crisis cost $ 12.8 trillion. This further omits subsequent rescues, unemployment, and the widespread harmful consequences suffered by millions.
The causes of the 2008 financial crisis were largely attributed to deregulation, securitization (double diversion and mergers), the sale of high-share mortgages, and the increase in Federal Reserve rates to coastal borrowers. In short, actions carried out by the government, the banking and financial industries.
In contrast, one set of activities that will lose less than $ 3 billion over seven years is small. Regardless of the political position, decentralized technologies offer the ability to make personal choices independently. It contains a personal loss resulting from poor decision-making, such as ICO investments. Moreover, it is a conscious participation in which any individual can invest or access only a certain amount that is under their direct control. Compare this ceiling to the one-sided scope that governments and corporations can achieve.
Incorporating decentralized technology into the operational guidelines of one regional government may be nothing more than a redundant double-entry method. By using them that collectively may not be the responsibility of any government, at the same time, decentralized technological capacity must be equally revealed.