Xi Jinping releases positive news, highlighting blockchain as a key breakthrough in independent innovation; U.S. Treasury Department: supports the need to monitor Libra, questions the capabilities of various regulatory agencies; Facebook hearing triggers trust crisis, Libra project faces "forced landing"; Trump's former campaign advisor Stephen Moore launches stablecoin Frax
According to PANews statistics, there were a total of 12 blockchain projects announced last week with a total financing amount exceeding $94.95 million (excluding projects that have not disclosed specific financing amounts), involving various fields such as VC, funds, software, trading platforms, online banks, ticketing platforms, payments, games, and more.
**Regulatory Dynamics**
1. The top-level released positive news about blockchain as a breakthrough for independent innovation of core technologies. On the afternoon of October 24th, the Politburo of the Communist Party of China held the 18th collective study session on the current status and trends of blockchain technology development. Xi Jinping emphasized the important role of integrated application of blockchain technology in new technological innovation and industrial transformation. The collective study of the Politburo of the Central Committee of the Communist Party of China clarified the development status, value, and future development direction of blockchain technology. The study mentioned that blockchain technology applications have extended to various fields such as digital finance, Internet of Things, smart manufacturing, supply chain management, digital asset trading, and more. Currently, major countries worldwide are accelerating the layout of blockchain technology development, and China has a good foundation in the blockchain field.
2. The National People's Congress Standing Committee's 14th meeting on Saturday afternoon voted to pass the Cryptography Law, which will take effect from January 1, 2020. The Cryptography Law aims to regulate the application and management of cryptography, promote the development of cryptography, safeguard network and information security, enhance the scientific, standardized, and legalized level of cryptography management, and is a comprehensive and fundamental law in China's cryptography field. With the approaching enactment of the Cryptography Law, the entire cryptography industry will also usher in standardization. It is reported that the main functions of cryptography are encryption protection and security authentication. Li Zhaozong, Director of the National Cryptography Management Bureau, stated: "Cryptography has played an irreplaceable and important role in various historical periods in China. Cryptography work faces many new opportunities and challenges, bearing a heavier responsibility for security and management. It is very necessary to formulate a comprehensive and fundamental law in the cryptography field."
3. On October 27th, it was reported that the State Grid Corporation of China officially established the State Grid Blockchain Technology Beijing Co., Ltd., which settled in the Zhongguancun Science Park West Park. The company will focus on blockchain technology research, product development, public service platform construction and operation, aiming to create a public technical means for ubiquitous power IoT construction, achieve a super link of interconnected things, a secure line of fair market transactions, and credit protection for the digital economy.
4. Bitcoin surged from around $7,500 to over $10,000 in just two days last Friday to Saturday, with a rise of nearly 40%. The blockchain sector surged, with over a hundred stocks hitting the daily limit in both markets.
5. In addition, several media organizations, led by CCTV, have begun intensive coverage of blockchain. CCTV Net published a commentary stating that Xi Jinping's important speech elucidated the important role of blockchain technology in new technological innovation and industrial transformation, and put forward specific requirements for the application and management of blockchain technology. CCTV News WeChat public account published an article titled "What is 'Blockchain' that has been frequently mentioned recently?". CCTV's second financial channel broadcasted a live theme on Saturday titled "Blockchain: What needs to be improved? What should be avoided?". On Sunday evening, in the program "Oriental Horizon" broadcasted on CCTV 13, the program extensively explained the basic knowledge of blockchain and cryptography with technical examples. The program introduced the current application scope of blockchain, such as financial services, supply chain management, public services, smart manufacturing, education employment, cultural entertainment, and other fields.
6. The U.S. Treasury Department: Endorses monitoring Libra, questions the ability of various countries' regulatory agencies. On October 24th, U.S. Congressman Emanuel Cleaver issued a statement on October 22nd calling for an examination of the potential systemic risks of Libra and its Calibra wallet, and the U.S. Treasury Department responded affirmatively to this request. The U.S. Treasury Department pointed out in its response that Libra must comply with the requirements of the Anti-Money Laundering and Counter-Terrorism Financing Reference Guidelines and the U.S. Bank Secrecy Act. The U.S. Treasury Department questioned the ability of U.S. and other countries' regulatory agencies to regulate Libra and requested necessary corrections, stating that these issues must be resolved before the launch of Libra and expressing that they will monitor Libra and the cryptocurrency market to address potential regulatory loopholes along with Congressional offices.
7. The International Securities Identification Organization (ANNA) has formed a working group to address the standardization of digital asset labels in the entire financial market. ANNA announced today that the new working group will consider appropriate International Securities Identification Numbers (ISINs), a coding system used by the International Organization for Standardization (ISO) to facilitate global corporate standardization. The association stated that the working group will investigate digital asset labels intersecting with the financial market, cryptocurrencies, tokens, and blockchain technology.
8. According to a press release issued by the U.S. Securities and Exchange Commission (SEC) on October 24th, the U.S. Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the U.S. Securities and Exchange Commission have joined the Global Financial Innovation Network (GFIN). GFIN is an alliance of 50 organizations aimed at advising on developments in technologies such as distributed ledger technology and artificial intelligence, as well as securities regulation and ICO themes. The participation of U.S. regulatory agencies in this network is intended to further enhance their professional skills in the U.S. and overseas, meeting the interests and needs of financial regulatory agencies representing the U.S. and its financial services stakeholders.
