LatticeX Foundation: A Brief Analysis of the Differences in Blockchain Supervision in Europe, America and Japan


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The US SEC sued Ripple for illegally issuing securities, while the Financial Services Agency of Japan considered Ripple to be not a type of securities.

Original Title: “Jennifer Jiang: Different Ways Waiting for the Same Return-Looking at the Spears and Shields of Blockchain Supervision in Various Countries”
Written by: Jennifer Jiang, Chief Strategy Officer, LatticeX Foundation

The regulation of blockchain has always been controversial and lacks international standards. In the first two weeks of the New Year, news from the financial regulatory agencies of the United States, Japan, Britain and Europe are coming in. It is sorted out and it is very representative:

Technical characterization of cryptocurrency

On January 14, Japan’s top securities regulator, The Financial Services Agency (FSA), reportedly stated that it does not consider XRP (Ripple) to be a security. This position is in stark contrast with the recent allegations made by the SEC.

The US Securities Regulatory Commission SEC sued the defendant Ripple Lab in the Federal District Court of Manhattan for violating the registration requirements of the Securities Act of 1933 by conducting unregistered US and global securities offerings of US$1.3 billion two years ago. As Ripple’s SEC litigation continues, this Thursday, Greyscale Investments, the world’s largest digital asset management company, announced the withdrawal of Ripple from the large crypto asset fund.

On January 8, the Financial Conduct Authority (FCA) in the United Kingdom required unregistered cryptocurrency issuing companies to register or “close their doors” before July 2021, otherwise they will face possible criminal penalties.

Cryptocurrency transactions

On January 11, Bakkt, a cryptocurrency trading platform established in 2018 owned by the Intercontinental Exchange, announced in a high profile that it would achieve a public listing on the New York Stock Exchange through the merger of SPACs, with a valuation of US$2.1 billion. Coincidentally, Coinbase, another cryptocurrency trading platform in the United States, reportedly has secretly applied for a public listing, and Fortune Weekly believes its valuation is around US$75 billion.

On January 6, the British Financial Conduct Authority’s ban on cryptocurrency derivatives came into effect. The ban prohibits the sale of cryptocurrency derivatives (contracts for difference, options, futures) and exchange-traded notes (ETN).

In fact, none of these can compare to the market shock caused by the several policies issued by the US Treasury Department in recent weeks. On the one hand, OCC’s explanatory letter No. 1174 of January 4 is generally considered to relax financial institutions’ use of stablecoin payment networks; on the other hand, the latest “cryptographic wallet rules” issued by the Financial Crime Enforcement Network (FinCEN) have been commented In order to make certain blockchain projects “technically” unable to comply, because the developers of smart contracts and distributed development tools often do not have name or address information to provide.

It is worth noting that in this process, the Blockchain Association, the blockchain industry association, played a very important role in coordinating and sorting out collective responses from exchanges, custodians, stablecoin issuance, and investment institutions. FinCEN initially provided feedback to the market in just 15 days. As of Thursday night in the United States, FinCEN said it would reopen its proposed rules for an extension of 15 days, and for record keeping and counterparty reporting requirements for another 45 days.

Blockchain has been living in a complicated dispute and regulatory ecology since its birth. But entering the third decade of the 21st century, with the acceleration of the application of blockchain technology and the steadily rising international enthusiasm for digital assets, this contradiction has become more prominent. It is often described as opening up through the “view mirror”. Front car. In the severe market turmoil this week, on January 13th, the ECB President Christine Lagarde’s speech to the media after the ECB Council meeting was particularly noticeable.

Lagarde said: “Bitcoin is a highly speculative asset that has carried out some interesting businesses and completely condemned money laundering activities. Therefore, there must be regulatory regulations at the international level, and consensus must be reached.” Lagarde believes that the possible path is to start at the G7 level, then move to the Group of Twenty (G20), and then expand to other countries. However, she added that the digital euro is likely to be realized in the next five years.

Innovation is advancing in stumbling, and such a process is no stranger to human exploration.

On July 5, 1865, when motor vehicles had just begun to appear on public roads, the United Kingdom promulgated the “Red Flag Act” for the management of locomotives and traffic regulations. The bill stipulates that the speed limit for driving cars in cities and towns is 2 mph, and 4 mph in the country. It also includes requiring a man to walk in front of the vehicle and use a red flag to clear the road. More than 30 years later, the 1896 Act removed the “red flag” restriction of the 1865 Act and increased the speed to 14 mph.

Although technology is accelerating, the first principle that has been repeatedly verified over time remains unchanged: technology is the driving force, and ultimately, human beings continue to pursue a better life for themselves and to pursue diversity, equality, fairness, and justice. Different routes will always go together. Looking back, maybe this is a great opportunity. We have developed a broad digital technology strategy to take advantage of new opportunities and remain diversified, creating measurable and meaningful aspects of the growing economy of our increasingly digital world. Opportunity.

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