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Golden Relativity | ​Firelink Technology Lu Jun: Blockchain anti-money laundering requires a combination of on-chain and off-chain supervision.



In recent years, as the blockchain technology has become more mature, the risks brought by the blockchain have been paid more and more attention. At present, the blockchain technology has been firstly applied in financial and other fields, but its money laundering risk is also due to the blockchain technology. Zoom in gradually. How to prevent the risk of money laundering in the blockchain industry has become an important research topic for regulatory authorities.

On September 22, 2020, a seminar on the application of anti-money laundering standards in the blockchain industry was held in Beijing. At the meeting, the Blockchain Branch of the China Software Industry Association served as the sponsor and collaborated with a number of organizations to discuss the general aspects of the application of anti-money laundering in the blockchain industry. Requirements" were discussed in depth, and finally reached a consensus on the establishment of the "Blockchain Industry Application Anti-Money Laundering Technology Alliance" in the next step.

In this regard, on September 29, Jinse Finance invited Lu Jun, a senior researcher at Firelink Technology, Song Ailu, the deputy head of the drafting team of the "Blockchain Industry Application Anti-Money Laundering Standard", and Cai Weide, director of the Digital Society and Blockchain Laboratory of Beihang University, Beijing. Wang Fenghe, director of the Financial and Internet Legal Affairs Department of Yingke Law Firm, and Deng Enyan, co-founder and CEO of Tiande Technology, were guests in the "Golden Relativity" live broadcast room, discussing and sharing the country's special anti-money laundering measures in the blockchain field!

Golden Relativity | Bit Jesus: BTC, BCH, and BSV all have a certain value in Bitcoin: In the Golden Theory of Relativity held today, regarding the question "What are the main reasons for switching to support BCH in 2017", Bit Jesus said, no. But if you take too much away from the white paper, I don't think it's still fair to call it Bitcoin. I think BTC, BCH and BSV all have some bitcoin value. I don't care which one is the real bitcoin. I care about who is the best tool to use to bring more economic freedom to the world. BTC doesn't care if it can be used as money. BSV is interested in complying with whatever the government wants. BCH wants to be the world's useless money. Store of value or payment system, which is more important for Bitcoin. The two cannot be separated. The availability of payments enables it to be used as a store of value. If Bitcoin had never been amazing for payments, no one would have started using it as a store of value. For anything to be used as a store of value, it must have a use case other than a store of value. Nothing in the world is used solely as a store of value, and Bitcoin is no exception in this respect. [2020/4/9]

In order to understand each guest's point of view more clearly, Jinse Finance has sorted out the sharing of each guest during the live broadcast. The following is the sharing of Lu Jun, a senior researcher at Huolian Technology.

Golden Relativity | Zhang Haihui: Blockchain projects should be transparent in the use of funds and currency rights: In this issue of Golden Relativity, Zhang Haihui, founder of the China-Canada Blockchain Innovation Accelerator, said: Blockchain projects need to be transparent in four ways, for supply References for all practitioners, including project parties and investors:

1. The team should be transparent: first, the founder of the project must take unlimited responsibility for the early stage of the project, and second, the team members should not be nominal, but should be able to enter the project full-time and be responsible for investors.

2. The use of funds should be transparent: funds serve blockchain projects, and project funds cannot be used for private use.

3. The use of community funds should be transparent: the funds invested by project investors in the early stage are sufficient to support the operation of the team during the lock-up period, so during the lock-up period of team shares, in principle, community fund shares cannot be used, and this part of the shares should be publicized Transparency.

4. The use of equity and currency rights should be transparent: there should be no crossover between equity and currency rights, and the transfer of interests between equity and currency rights should be avoided. Otherwise, it is very likely to cause illegal possession of project funds to serve their own equity companies, resulting in losses for investors. [2018/8/31]

Golden Relativity | Liu Bin: Domestic encrypted digital currency transactions are far less than those in the United States: In this issue of Golden Relativity, Liu Bin, director of the Financial Research Office of Pudong Reform and Development Institute, said that from the data point of view, the domestic encrypted digital currency transactions and ICO financing amount and number of projects It is already far less than the United States, and even some countries and regions such as Singapore. Our regulatory policies have been well implemented since 1994 last year. Now we continue to introduce policies, mainly out of consideration of the economic and financial situation at home and abroad, including the financial supply-side reform in the first half of the year, the recent P2P incident, and the Sino-US trade war, etc., which will affect our financial system and foreign exchange management. have a big impact. At this time, the supervision of encrypted digital currency should comprehensively consider the above factors, and after the encrypted digital currency market fell, many disputes occurred, which is also one of the factors. [2018/8/31]

Lu Jun: Hello everyone, I am Lu Jun from Firelink Technology. I devoted myself to blockchain and digital assets in 2016. Before that, I did quantification and research on the buyer side of hedge funds. Today I am very happy to represent Firelink Technology to participate in this online discussion.

Golden Theory of Relativity | Zhang Feifei: Chain reform is based on sacrificing the rights and interests of the company: In this issue of Golden Relativity, on the issue of "Chain reform, why? Change what?" Zhang Feifei, president of the Los Angeles Blockchain Economic Association Said: chain reform, currency reform, think about what it is for, what does the blockchain solve? In my opinion, the blockchain solves a problem of centralization of interests. We can't over-interpret the blockchain. The blockchain is a decentralized account book. The reason why we use the blockchain account book instead of the centralized account book must solve the problem of many people together. . Therefore, for the chain reform, first of all, it is most appropriate for us to position ourselves in the traffic economy. I think chain reform is difficult. The blockchain will reshape the traffic economy.

What does the blockchain economy look like?

I personally feel that the blockchain economy needs to include three sectors: 1. Value investors. 2. Value Creator. 3. Value consumers.

Value investors invest in the early stage when the value of the token token is 0, and obtain the token.

Value consumers obtain tokens through participation and contribution during project operation.

Since the participation of a large number of users brings value to the project, value consumers express the value of tokens in legal currency.

The chain reform is mainly at the expense of the company's rights and interests. Like slavery reform. A farmer started by letting slaves work for free. If he reforms, he must pay slaves wages. This reform is very difficult. [2018/8/10]

Firelink Technology is also one of the drafting units of the "Blockchain Industry Application Anti-Money Laundering Standard". Standards are very important to the long-term ecological development of the industry, so we actively participate in the discussion and formulation of anti-money laundering standards, and have also invested a lot of resources in the blockchain anti-money laundering address labeling work, and launched a tool that can be used to monitor illegal digital assets. On-chain analysis system for transactions. We will also strive to actively promote the implementation of standards with the help of the research strength of the Firelink Technology Research Institute and our industry-related resources.

Golden Relativity丨 Qifu Capital Lan Hongming: The emergence of regulatory policies is the biggest benefit to the cryptocurrency industry: On the topic of "government supervision turmoil" hotly discussed today by Golden Relativity, Qifu Capital Lan Hongming said: If specific policies are introduced Supervision and related tax policies are actually a major benefit to the industry. If there is such an action, it will firstly represent the government's official recognition of the cryptocurrency field, and secondly, it can dispel a large number of air coins in the market.

Qifu Capital is a professional fund management company focusing on private equity investment. It mainly manages venture capital funds and gathers TMT, modern service industry, new materials and other industries. [2018/6/25]

From a global perspective, countries have implemented different degrees of supervision on the anti-money laundering of virtual currencies under blockchain technology, but the degree of strictness of supervision is quite different.

The United States has issued federal-level regulations since 2011. All virtual currency exchanges and transactions must comply with anti-money laundering laws, and virtual currency supervision has been incorporated into the existing financial regulatory system to implement full-process monitoring.

Major European countries have taken a strong crackdown on anti-money laundering activities. For example, the German Criminal Code stipulates that all acts that constitute money laundering, attempted crimes, and negligent crimes are sentenced; Switzerland, which is regarded as a "money laundering paradise", also has strict regulations on money laundering Very strict supervision; although the UK attaches great importance to anti-money laundering, most domestic business activities rely on industry self-discipline.

Domestic supervision of blockchain anti-money laundering has been strengthening. Since joining the FATF organization in 2007, it has been promoting the formulation of anti-money laundering standards for the blockchain industry. The purpose of this standard at the national level is to maintain economic and financial order and improve the existing anti-money laundering legislative framework system.

The technology of the blockchain industry is also in a constant iterative process, so the formulation of standards needs a process that keeps pace with the times, especially in the part of anti-money laundering. There are some differences between countries, and some integration between internationalization and localization is required.

Wang Yukun: Who are the companies in the world that mainly focus on the blockchain anti-money laundering field? What progress has been made?

Lu Jun: Regarding the field of anti-money laundering, we have seen various associations, self-regulatory organizations, and regulatory agencies appearing most in the news. In fact, regulatory technology service providers are still relatively rare. The money laundering alliance and regulatory technology research and development are also an industrial chain, mainly talking about the most concerned anti-money laundering organizations. The most well-known is the international organization FAFT, the Financial Task Force, which released INR15 in June 2019, clarifying the regulatory details of digital assets, and giving an implementation timetable to stipulate that countries strictly implement regulatory requirements.

The anti-money laundering regulations issued by government organizations in various countries basically add localized regulations on the basis of the FAFT framework. For example, the US Financial Crimes Enforcement Network (FinCEN) submitted the "2019 FinCEN Improvement Act" to clarify the regulatory responsibilities and regulatory scope of illegal virtual currency transactions. In September this year, the anti-money laundering and anti-terrorism financing rules of the financial sector were updated, aiming to further improve the efficiency and effectiveness of anti-money laundering programs.

Europe takes the EU's fifth anti-money laundering directive - "Directive (EU) 2018/843" as a typical example. In order to deal with the anonymity of virtual currency, detect money laundering activities in a timely manner and prevent its occurrence, it is stipulated that financial intelligence units (FIUs) can use virtual currency The address is associated with specific identity information, and the International Association of Trusted Blockchain Applications (INATBA) was also established

The country is currently promoting the industry blockchain anti-money laundering application technology alliance, and the standard "General Requirements for Anti-Money Laundering Application in the Blockchain Industry" will be issued soon.

In addition to regulatory agencies and industry organizations, non-financial institutions and blockchain companies, such as companies engaged in wallets, transactions, public chains, and alliance chains in the blockchain track, are spontaneously participating in anti-money laundering activities.

Wang Yukun: How do you view the double-sided nature of blockchain development for anti-money laundering supervision?

Lu Jun: Regarding this issue, I think any technology itself is neutral, but technology has its advantages and disadvantages.

Blockchain technology may still be in an initial stage of development. The advantages of blockchain technology are conducive to the industry's anti-money laundering supervision, but there are also some characteristics that are not conducive to the industry's anti-money laundering. This is the dual aspect of the problem. face. One of the advantages of the blockchain is that it can track the addresses on the chain, while the traditional anti-money laundering of banks tracks the user's funds through the account and supervises by marking the user's address in black and white. Therefore, the use of blockchain for anti-money laundering supervision requires a full combination of technical advantages, such as combining blockchain technology with the technology of financial institutions in identity verification, fund auditing, and transactions.

Blockchain technology enables data to be uploaded to the chain, ensuring that the data is open and transparent and cannot be tampered with. At the same time, the shared ledger technology of the blockchain is equivalent to allowing multiple organizations to share a piece of data, which can reduce the information asymmetry between regulatory agencies on the data, especially the information gap between the regulatory and the regulated objects. Regulatory friction caused by symmetry.

But we must also see that the blockchain is also facing challenges in anti-money laundering supervision. The difficulty is that it has anonymity, which is also criticized by people. How to use the blockchain to convict the subject, object and behavior of money laundering is a difficult point. Especially when the decentralized technology has not yet fully matured and landed, some anti-money laundering crimes have occurred on the blockchain, and it will be more difficult to use traditional litigation to pursue accountability.

Therefore, it is now necessary to combine on-chain and off-chain supervision, to track data, address identification and analysis on the chain, and to need traditional regulatory agencies under the chain, to make a system design from top to bottom, and then implement this The system is communicated to the regulatory agencies that cooperate with each other, and everyone forms such an alliance. Finally, a feedback relationship will be formed from the system level and the technical level. The technology must meet the needs, and then the system must combine the characteristics of the blockchain technology itself to meet the requirements of the blockchain anti-money laundering. The occurrence of money laundering crimes.


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