The succinct statement details the government’s pending official definitions of blockchain regulations. Publicly announced fundamentals may seem comparatively innocuous or even prudent, but such official justifications are an obvious attempt to restrict rather than develop decentralized technologies. Even a rudimentary preliminary investigation of the statements highlights what can generously be labeled contentious logic.
“China is prepared to publish official standards on blockchain technology next year, and an official told Xinhua that they will” provide the industry with some guidance “on the technology.
Li Ming, director of the Blockchain Research Office at the Ministry of Industry and Information Technology (MIIT), told Xinhua Economic Information Daily that work had already started to form the standards. Li, however, made it clear that while the standards would provide some guidance to blockchain developers, authorities did not expect the official guidelines to “advance rapidly in the development” of the industry. Despite efforts to clamp down on financial risks associated with cryptocurrencies and initial coin offerings, the Chinese government has sought to show its support for blockchain development. China was the world’s largest source of blockchain patents in 2017, while a blockchain research center was opened last September by the China Academy of Information and Communications Technology, a research institution under the MIIT.
The new standards being developed by the Blockchain Research Office will include guidelines for the application of blockchain in terms of business, information security and reliability, Li told Xinhua. Despite the exciting potential surrounding blockchain, the technology remains in an early stage. Without clear regulations, security issues have caused nearly $ 2.9 billion worth of losses worldwide between 2011 and 2018, according to Baimaohui Security Research Center, an online security specialist who has worked with Alibaba and Huawei.
In the last two years alone, US $ 1.9 billion has been lost due to blockchain security issues, according to Baimaohui. Not only are China’s leading tech companies and banks applying for blockchain patents and investigating how the technology can improve services and increase public trust in supply chains, China’s Ministry of Public Security is also studying how to implement the technology in terms of data storage. Earlier this week, data from the Chinese Intellectual Property Office showed that the Ministry of Public Security had filed a patent application for a blockchain system that would securely and transparently store unalterable data in the cloud. Police across the country could use and share such a system, allowing data to be quickly shared between multiple agencies. (CGTN) “
To begin with, let’s not forget the differentiation of decentralized capacities versus centralized services. A regionally authorized service naturally adheres to the applicable geographically specific legislation. For example, an international fast food chain may, in some European countries, sell alcoholic beverages over the counter, while the same operator typically cannot do so in North America. This variation is possible because the use of the service is localized. Having ‘official’ guidelines for decentralized capacities would be to imagine that the access and / or use of decentralized services is regional, or under the same legislation. Maybe not. It is decentralized.
Second, the US Government Accountability Office (GAO) has estimated that the 2008 financial crisis cost $ 12.8 trillion. This also omits subsequent bailouts, unemployment, and the far-reaching damaging consequences suffered by millions.
The causes of the 2008 financial crises have been largely attributed to deregulation, securitization (double dip and pooling), subprime mortgage sales, and the Federal Reserve rate hike to subprime borrowers. In short, actions carried out by the government, banking and financial industries.
By contrast, losing less than $ 3 billion on a set of activities in seven years is very small. Regardless of political stance, decentralized technologies offer the ability for individuals to independently make personal choice. Personal loss resulting from poor decision making, such as ICO investment, is contained. In addition, it is a conscious participation in which any individual can only invest or access a certain amount, which is under their immediate control. Compare this limit to the one-sided limits that governments and businesses can achieve.
Incorporating decentralized technology into the operational guidelines of a regional government may result in nothing more than redundant double-counting methods. Used by individuals who collectively may not be under the purview of a single government, simultaneously decentralized technological capability must likewise be discovered.