Huo Xuewen: Blockchain may become a source of illegal fundraising if it is not regulated

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. 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, which is the most critical, called digital encryption technology. It links the transaction information of different time periods to form our current blockchain. Its essence is not 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 a certain individual institution to prove who you are, but the society jointly certifies who you are. In Huo Xuewen's view, blockchain technology will solve the trust problem in financial activities at a low cost, and 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 social problem that is difficult 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 credibility. 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, and the credibility of such "digital currencies" is questionable. Some blockchain currency application platforms also engage in futures trading and even high-leverage trading, which 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.