Ever since China has banned Initial Coin Offering (ICO) and blocked all websites related to cryptocurrency exchange and trading, countries like South Korea and Hong Kong has set up stricter regulations on companies domestic participating in ICO and will not tolerate listings of digital currencies that are structured like “securities” or “futures”.
Similar to the era when internet was rising and dominating a lot of businesses and innovations, the Blockchain is rather a new thing and many are still in the midst of understanding the underlings of the technology. With its design to support any kind of anonymous transactions, it has become an ideal platform for people to use as money laundering and online crimes. Thus, government officials have a reason to set more regulations of the tracing processes and the use of crypto currencies.
However, there are many advantages using cryptocurrencies to counter real problems. Overlooking the common cryptocurrency like bitcoin, blockchain has more to offer. It is a new way for data to be recorded and stored; therefore, making transactions more efficient and distribute information in a trustless environment. Therefore, any kind od collaborative transactions is supported with high available and integrity. Furthermore, blockchain is a decentralized database technology, and so itself needs little regulation. People should focus on the applications of the technology rather than the technology itself.
Overall, people should be aware of the functions of bockchain. Furthermore, people should compare the strengths and weaknesses before making negative asumptions about its associated products like cryptocurrencies. Some of the internet giants would not have existed today if we stopped all dot-com initial public offering during the dot-com boom. We may not see the future Amazon or Yahoo if we ban all ICOs now.
Source: South China Morning Post