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First release | Xiao Sa: The virtual currency hype risk commented on the announcement of the Three Association.



The China Internet Finance Association, the China Banking Association, and the China Payment and Clearing Association jointly issued the "Announcement on Preventing Hype Risks in Virtual Currency Transactions". As soon as the news came out, Sister Sa's private messages filled the screen. Affect the currency price? As an observer, I would like to comment on a few points from an objective perspective, for readers' reference only.

1. Virtual currency is not legal currency, but it erodes the living space of legal currency in various countries

As we all know, virtual currency has no legal compensation, no national credit for endorsement, and is not legal currency. However, virtual currency essentially has: (1) medium of exchange; (2) unit of account; (3) function of value storage (FATFA summarizes the functions of virtual currency), becoming a medium of value exchange.

These functions are enough to arouse the vigilance of the traditional financial world. British banker Mayer Rothschild once said: "As long as I can control the currency issuance of a country, I don't care who makes the laws." Judging from the judgments of South Korea, the United States, Japan and other countries, there have been criminal cases, mostly focusing on fraud, illegal fund-raising, and illegal issuance of securities. It has affected the social management order, involved a large number of people, and involved a huge amount of money, and the social harm is obvious.

First release | Blockchain technology and software security practice base officially established: Jinse Finance reported that today, China Soft Association Blockchain Branch, People's Public Security University, and Heze City Public Security Bureau jointly built a blockchain technology and software security practice base Officially established. At the same time, Song Ailu, deputy secretary-general of the Blockchain Branch of the China Software Association, was hired as a special expert in the blockchain technology and software security practice base.

The blockchain technology and software security practice base mainly involves the following areas: illegal digital currency transactions and money laundering, blockchain pyramid schemes and telecom fraud, online gambling, four-party payment, fraudulent trademark registration, etc., joint social governance, urban security, cutting-edge technology Industry experts in the field cooperate with the Police Association.

According to public reports, the public security organs under Heze City have just cracked a huge telecommunications network fraud case recently, smashed a number of fraudulent gangs suspected of using online loans and investing in "bitcoin", arrested 83 suspects, and seized and frozen the funds involved in the case 27 million yuan. [2020/7/21]

Throughout the history of currency and finance, the monetary system has a fundamental impact on the country, and can even directly transform production relations and affect the direction of social development. Therefore, it is appropriate for countries to maintain vigilance and regulatory attitudes towards the established virtual currency (especially when it becomes a payment and settlement tool connected with real-world wealth).

News | Credible Educational Digital Identity Launched in Baiyun District, Guangzhou Using blockchain and other technologies: On December 25, the launch ceremony and application seminar of the Trusted Educational Digital Identity (Education Card) Guangdong Province application pilot was held in Baiyun District, Guangzhou.

According to reports, the credible education digital identity integration adopts core technologies such as domestic encryption and blockchain, and innovatively issues integrated digital identities under the network environment of "cloud computing, edge computing, and mobile computing", realizes integrated key management, and builds " Trusted Educational Identity Chain". (China News Network) [2019/12/25]

2. Cut off the support of traditional finance

On the surface, the emergence of virtual currency is to replace traditional financial institutions and payment institutions. Since the "cypherpunk" era, it has been committed to escaping from the mainstream financial system.

From this logic, there seems to be an antagonistic relationship between virtual currency and traditional financial institutions; the actual situation is not a theoretical inference. Banks, trusts, insurance, securities, futures, and third-party payment have also spotted the "high risk and high return" of virtual currency. There are not many traditional financial institutions that actively or passively provide accounts or circulation for virtual currency transactions. With the pressure of anti-money laundering and other regulatory requirements, some time ago, a credit bank issued a statement banning virtual currency transactions.

First release | DVP: Vulnerabilities in the Bitstamp exchange can lead to a large amount of KYC and other information being leaked: Golden Finance News, recently, DVP received a vulnerability in the world-renowned exchange Bitstamp submitted by security personnel. Attackers can use this vulnerability to view a large number of user IDs, Sensitive information such as bank cards poses a serious threat to user information security. In order to avoid the vicious incident of KYC leakage, the DVP security team notified the platform to repair it as soon as possible after receiving the vulnerability, but did not receive a response. DVP reminds relevant users to pay attention to the security of personal information to avoid losses. [2019/8/13]

In the absence of traditional financial institutions, the technical threshold of virtual currency still directly affects the number of participants. It is becoming more and more difficult to convert fiat currency into digital currency, and it is also difficult for people who have made money in the currency circle to convert currency into RMB. In the exchange stalls in Hong Kong that Sister Sa observed, there was even a case where Bitcoin was exchanged for fiat currency and was arrested on the spot. A case of robbery. It is difficult to exchange legal currency. Cut off the infrastructure of financial institutions, and the pool of virtual currency will not be so full, reducing the possibility of becoming a barrier lake.

First release | Baidu promotes the online collection of 246 museums on the chain: Golden Finance News, recently, Baidu Super Chain and Baidu Encyclopedia, based on blockchain technology to create a "cultural art chain" to promote the online collection of 246 museums in the Baike Museum plan winding. Based on the "Cultural Museum Art Chain", Baidu will work with museums to promote the confirmation and maintenance of online collection copyrights, and at the same time explore digital trading methods for online collection copyrights, so as to provide more comprehensive services and more rights and interests for cooperative museums. According to reports, this project will be carried out in stages. In the first phase, the online collection will be completed to confirm the ownership of the chain, and an exclusive copyright deposit certificate will be produced for each collection. Allow every user to view the certificate on the PC and WAP collection pages of the Baidu Encyclopedia Museum Project. In the future, Baidu will also promote the combined application of AI and blockchain technology in the cultural and museum field to ensure that the on-chain data matches the collections, laying the foundation for subsequent digital transactions of image copyrights of collections. [2019/1/30]

The announcement specifically mentions not to provide customers with virtual currency services "indirectly", which shows: (1) penetrating supervision, superficial articles will not affect the quality; (2) beware of financial institutions cooperating with other companies in virtual currency business, preventing (3) Increase the compliance obligations of member units and screen currency-related services.

3. Why is it an association rather than a regulatory body

First of all, ICO is an illegal public financing behavior. In principle, since ETH, most virtual currencies have been illegal financing tools from the beginning. In other words, the currency circle itself is a gray industry, and there is no so-called regulatory agency;

Secondly, the association is an industry self-regulatory organization. Its announcements or statements do not have legal force, but they have important reference significance. Especially in civil judgments, the association’s announcements will be cited as "industry practices". Therefore, it is foreseeable that for a period of time in the future , cases involving virtual currency will be affected by this announcement;

Again, crossing the river by feeling the stones, the announcement of the association is to give a vaccination to let the public know the illegality of virtual currency hype. If the situation improves, let it go; if the situation worsens, relevant hard laws will come into play. lessons learned.

4. Response to the "broken card" action

Veterans in the currency circle said with a smile that if you have not been frozen, you are not a person in the currency circle. Indeed, in the past two years, many friends have received "black money" (involving predicate crimes) due to the trading of virtual currency. Sister Sa also wrote an article analyzing how to deal with the problem after freezing the account.

After the card is frozen, the financial institution becomes the bridge between the depositor and the case-handling agency. Generally, the bank will inform you that your account has been frozen by the police in a certain province, city, or place on suspicion of XX. At this time, the depositor will usually contact the police handling the case to inquire about the situation. , under the circumstances that can be explained clearly, they can be unfrozen in a short period of time; but many people cannot explain the situation at all, so they have to wait for the trial of the predicate crime to be completed before returning them. For this reason, financial institutions are also under greater pressure, and depositors complain and complain. As soon as this announcement comes out, financial institutions can justifiably add a clause to the contract: if the account is used for virtual currency speculation, they will refuse to provide you with services.

5. Will the announcement affect the currency price

To be honest, the currency price is as volatile as the stock market, and Sister Sa is not sure. However, Musk claimed to accept bitcoin payment for buying a certain car, but later he was scumbag and refused to pay with virtual currency, causing the price of the currency to plummet.

My real feeling is: Maca’s reasons are very strong. He talked about environmental protection. In the current carbon neutral environment, environmental protection is a difficult problem for global common governance. Bitcoin's electricity consumption problem is like lice on a bald man's head. If one day BTC drops sharply, it may be that the whole world encircles it in the name of environmental protection.

Of course, as leaders in the mining industry, the influence of the Chinese on the currency circle is real. The risk prevention announcement issued by my country's three major associations has cut off the infrastructure for the frequent trading of domestic residents' virtual currency, and has played a positive role in controlling the speculation of currency by mainland residents. I think the effect is immediate.

As for whether these blockades and regulations will push up or lower the currency price, it is impossible to predict. Maybe the situation will become: senior players play deeper; novices have no idea.

Finally, I would like to praise the courage and strength of the three associations. Virtual currency transactions have risks for the public. Dare to stand up and issue an announcement to show that the associations are upright and responsible! Moreover, the associations abide by the norms and regulate their own members, which is reasonable and understandable. Well, the above is today’s sharing, thank you readers! !


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