Blockchain Needs Regulation, Chinese State Media Says

"People's Daily" is the the official publication of the Communist Party of China
26 February 2018   415

The official publication of the Communist Party of China "People's Daily" called for toughening regulation of the blockchain industry with a view to fostering its further growth. This is reported by CoinDesk.

In a paper published today, February 26, entitled "Three questions to blockchain," the publication expressed total support for government policies aimed at supporting new technologies. At the same time, the party's mouthpiece warned of the growing risks associated with certain areas of application of distributed registry technology.

Blockchain technology is still very immature. We must be cautious about speculation on this concept and separate technology-based innovations from those with a fund-raising purpose. In order to better promote and utilize the blockchain technology, the government should implement strengthened policies and regulations.
 

People's Daily

The article also provides an overview of the main areas of application of distributed registry technology, including financial services, charity, protection from counterfeits, and so on.

Most of the current blockchain hype is focusing on fundraising and speculation instead of genuinely solving real-world problems with the blockchain technology. 
 

Hu Danqing

Technology product specialist,  Alibaba's Ant Financial Service

He also noted that the country's authorities should develop legal norms to effectively distinguish technological innovations from simple fundraising. 

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   74

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.
 

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.
 

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.