Regulation is inevitable and it won’t ‘overburden’ the blockchain.
In the early hours this morning, the global market value of crypto hit a new low in May, with a minimum of $324.706 billion US dollars. Compared to early May, it shrank by nearly $150 billion US dollars.
And the market has on the decline. There was no rise in the top 30 list, Bitcoin and ETH fell below $7500 and $600 US dollars respectively.
Analysts pointed out that this may be related to the special report by CCTV finance channel, which has been streamed for three consecutive days.
On the evening of May 21, CCTV Finance channel focused on the chaos of the token market, pointing out that the Scam coin is frequently creeping in and the market is flooded with false advertising. On the 22nd, the channel revealed the chaos in the exchange and alerted the possible consequence of lack of supervision behind.
However, every coin has its two sides, as a cutting-edge technology that may be able to lead a revolution, The blockchain has not been blindly denied. With Alibaba, Tencent and other big companies gradually entering this field, blockchain will be more accessible in the next few years and talents in the relevant field has become very popular already. “ Combining with reasonable supervision and management mechanism, we are convinced that blockchain will definitely benefit the society.”
According to those reports, this represents the country’s attitude toward blockchain and suggests that the industry may face a new round of regulation.
“ How to ensure legal compliance in the field of Cryptocurrency?” Li Tian, CEO of Hong Kong Key Win capital limited, proposed an initiative attempt based on the legal structure at the conference of Huobi Central Crypto Wealth Summit and Trading Executive Program sponsored by the insChain, on 19th May.
In the asset management industry, legality and professionalism are the most important, but the cryptocurrency market is still out of regulation. Li Tian believes that the regulatory model can be built by establishing oversea fund management companies to regulate cryptocurrency business.
It is undeniable that the cryptocurrency market is gradually strengthening supervision, and the relevant department has also realized the importance of taxation.
It is understood that BITFINEX, one of the world's leading cryptocurrency exchanges, officially requires customers to submit tax forms and social security numbers for government agencies to use for tax purposes.
Coincidentally, according to Bloomberg on May 23, India may soon impose an 18% GST(Goods and Services Tax) on cryptocurrency transactions, and the Central Indirect Tax and Customs Committee is reviewing the proposal and submitting it to the GST Council after completion.
'From my experience, the adoption of relatively inclusive supervision can both protect innovation and regulate the market.' Yu Jianing, director of the Industrial Economic Research Institute of the Ministry of Industry and Information Technology, Provide some regulatory advice on how to use the blockchain.
As a new technology based on the Internet, Yu believes the blockchain, To a large extent, it is not so fundamentally different from the previous Internet phenomenon. The valuable experience on ‘Internet+’can fully applies on the blockchain as well.
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