NEO Founder: Don’t Worry, Blockchain Can Promote the Emergence of A New Regulatory System
These days, financial watchdogs are very cautious in blockchain and cryptocurrency related regulations. The financial centers over the world, like Japan, Hong Kong, the UK, and the US have done a lot in crypto supervision while China, still holds a strict attitude towards cryptocurrency trading and blockchain related projects.
Nevertheless, there is still some superior China-based blockchain project shining in the crypto universe. NEO, also known as the Chinese ethereum, has just past its second anniversary of its main net. In an interview with 8btc, its founder Da Hongfei demonstrated his point of view in the development of blockchain projects under the pressure of regulatory barriers.
Da first indicated that the gaming industry has strongly influenced the development of NEO blockchain and it is a major focus of NEO ecosystem. He commented that:
“In the early days, people were expecting to see blockchain being applied to the finance industry as the new technology may disrupt the traditional finance industry. However, implementation has been faced with regulatory barriers as the finance industry is strictly regulated virtually everywhere in the world,” and that’s why NEO is so optimistic about game development on blockchain.
Da also demonstrated two possible ways that may integrate blockchain into finance industry: one is cooperating with a licensed traditional financial institute where the license may limit the business scope and the business activities may be limited to what is permitted under the license, which is a tricky issue for blockchain companies.
Otherwise, the blockchain startups may bypass the license by doing something that doesn’t need a license.
“In essence, blockchain can barely survive within the existing financial regulation system.”
However, if one thing conforms to the original definition and regulation, its subversiveness is limited. Da also talked about the popular issues including the stabilizing Coins and STO.
He argued that the emerged stable currency that meets the supervision is useless as there is no difference from banking transfer. Da believes that a subversive product will promote the emergence of a new regulatory system.
In the future, there must be a new regulatory framework that especially made for the crypto industry. As thus, to be a smart investor,
“You should invests time and intelligence in the industry and does something creative, at the same time, refrain from just investing money in it, expecting how it will rise tomorrow and how many times it will be doubled,” said Da.