Secretary of Beijing Financial Work Bureau: Blockchain currency platforms should be restricted from engaging in futures and leverage

On July 10, the first China Financial Technology Conference was held in Beijing. Huo Xuewen, secretary of the Party Leadership Group of the Beijing Financial Work Bureau , said that blockchain will become the underlying technology of financial technology, but if it is not standardized, it will become the source of illegal financial activities.

Huo Xuewen said that the essence of blockchain technology is a distributed database jointly participated by different nodes, and it is an open public account book. From the data packet to the block, there is an encrypted hash value calculation in the middle. This is the most critical, called digital encryption technology, which links the transaction information of different time periods to form our current blockchain. Its essence is not to be unregulated, but to let the society jointly regulate, that is, social co-governance, to replace a single certificate issued by a certain institution. It is not for a certain individual institution to prove who you are, but for the society to jointly certify who you are.

In Huo Xuewen's view, blockchain technology will solve the trust problem in financial activities at a low cost. Credit is the foundation of financial activities. The supervision of all financial activities, including product registration, information disclosure, and fund custody, is to solve the trust problem. Since the trust problem has always been a difficult social problem to solve, there are many credibility institutions in our society. Blockchain technology has created a way for us to solve the credibility problem with common trust.

Huo Xuewen said that some people use blockchain technology to create various so-called "digital currencies", but in fact, that is not a legitimate way. It is questionable how much credibility this kind of "digital currency" has. Some blockchain currency application platforms also engage in futures trading and even high-leverage trading. This is not a standardized behavior and should be restricted. If it is not standardized on this basis, it will create new sources of illegal fundraising or financial instability.