Chinese Scholar: ‘RegChain’ will be the Future Trend of Blockchain Regulation
“There are several ‘bad’ tokens sneak into the bitcoin industry at present. After cryptocurrency becomes popular, some speculators pretend they are the experts in this area and start to give lectures all around making profit without doing any academic work. This industry is in need of systemic regulation,” said Professor Yang Dong, Director of Big Data, Blockchain and Regtech Lab of Renmin University of China, in an interview with People’s Daily.
Yang indicated that blockchain itself is a complex concept which is hard to be fully understood, therefore, this industry needs more propaganda, education and promotion. Unfortunately, there are too many armchair experts in this area which leads to certain industrial bubble and technical bubble.
Yang said, there are several blockchain committees in China but he is still calling for setting up a blockchain federation. As a standing committee member of China Computer Federation (CCF), Yang emphasized that instead of maximize profits, scholars should have a sense of mission and trying to make great contribution to the blockchain industry.
The past experience of P2P and equity-based crowdfunding regulatory tells us that the regulation must be in placed in time. Relevant supervision measures should be issued immediately to standardize and protect the real innovation in this industry. A legitimate track also should be set up to provide both flexibility and protections to people who participates in blockchain innovation.
Yang also brought the concept of ‘Regtech’ to the blockchain regulation, the ‘regulation based on the blockchain technology’. He emphasized that strengthen supervision through blockchain technology is an important application scenario for blockchain adoption.
“Chinese government needs to improve supervision methods through technological means to enhance regulatory efficiency, reduce regulatory costs, and improve service capabilities of each sector. I believe that a blockchain-based regulatory system may help improving the effectiveness of regulation. ‘Blockchain + supervision’, or the ‘RegChain’ will be the future trend of regulation.”