Deng Jianpeng: What should China do when the United States gains stable governance?

As of 2020, stablecoins have become an important "development" in the crypto industry and have a huge impact. According to Forbes, stablecoins will become a priority in 2022. According to a report by the US Presidential Task Force, in October 2020 and October 2021, the use of fixed income securities increased by 500% and adoption only showed no delay. The previous author explored the many dangers of permanent parts and would like to discuss two issues in this article.One is that the United States has supported the rules of a stable room, and the other is how the Chinese authorities should react.

1. American Politics Foreplay - Research, Dissemination and Hearing

After the US Securities and Exchange Commission issued a stable coin warning in November 2021, Assistant Treasurer Nellie Liang recently said, “If Congress doesn't pass a law, the administration will try to use his power. Regulators argue that if investors are stable, they can hurt the business, and if that race happens, big business could disrupt financial markets.

Also in November 2021, the board sent a letter to several securities firms, including Coinbase, Gemini, Circle, Paxos, TrustToken, Center, Binance US and Tether. In its letter, the Board requested the consultants to provide information on outright purchases, issuance procedures, restrictions, announcements and redemptions, as well as information on redemptions (including conversion to US dollars) .

In December 2021, the US Senate Banking, Housing, and Planning Committee held a hearing on the coins. This panel is chaired by Senators Sherrod Brown and Patrick J. Toomey.) "Stablecoins: How They Work, How They Use Them and What Are Their Risks?".

During the hearing, Brown said answers from stable businesses were unclear so lawmakers couldn't believe most consumers could get more protection after buying fixed income securities. Senator Patrick J. Toomey agreed that the fixed room needs new law. Regulators need to recognize that the self-issuance of a stable coin does not affect the global representation of the US dollar, but good governance can support it. Finally, regulation should allow stablecoins to interfere with current financial processes. "

Before the hearing began, Tumi announced the firm financial governance rules on the financial services website.

Term deposits should not be limited to term deposits.

First, the business model of financial stability is different from that of traditional banks.

Second, the need for full financial stability as banks will affect innovation.

Third, the oversight of the payroll function should establish the level of activity.

Stablecoin issuers are selected by three or more regulators, depending on their business model: (1) operate as an existing finance company; (2) obtain a specialized license in The company specializes in the provision of permanent assets under the new law. (3) Register a money transfer company in the country's existing system and as a loan service. the company in the federal FinCEN system. (4) All securities dealers should be able to obtain a clear health insurance policy, establish rules for assets that support securities and meet investment requirements and requirements. (5) Firms should be eligible for fixed income securities if they follow these procedures. (6) No fixed interest rate should be kept as security. (7) Administrators should protect the privacy, security and confidentiality of secure users, including users who choose not to share information with third parties. (8) Updates to financial governance under the secrecy law, including provisions for existing financial institutions, to incorporate new technologies such as: stablecoins.

In this hearing, the Dispat of Circle (USDC issuer) and Masari's attorneys jointly designed a stable financial governance procedure that restricts the types of special funds the company is able to maintain, and develops publicity and disclosure procedures. redemption. tsim. stability piece. It should be noted that Tether, the industry threatened by financial stability and the number one company by market cap, did not attend this public securities hearing. . Currently, the USDT is still a stable currency.

On December 21, Fitch Ratings released a report suggesting that better regulation could reduce the credit risk of Stabilitycoins. Fitch believes that US regulation is particularly important for improving the economic downturn over the medium term, as most of the major stable currencies are now pegged to the US dollar and this is not expected to change in the medium term.

In summary, the US Congress provides a more detailed and comprehensive understanding of the dialogue, implications, and risks of currency. Several policies have been outlined which will lead directly to a stable economy over the next two years. The strong financial management and "long-term decision-making" regulation of the cryptocurrency market has sparked much controversy among Chinese regulators.

Additionally, some U.S. Treasury officials feel that there is no need to promote digital currencies and implement digital currencies like China is doing. Most of the fixed coins are tied to the dollar, and to the public, their function and payment is almost identical to digital currencies, and they play an important role in the development of the large-impact international currency of the US dollar. Moreover, while Chinese investors have a large amount of stablecoins, the Chinese financial regulator has not released detailed information and information on the risks of the stable currency. We would like to make the following recommendations:

2. I am notRestrictions on China's stable financial management

Compared to the US investigation and lawsuit against the USDT, China's ruling is inadequate on the following points: First, China's ruling is prohibited and no initial care is taken. According to article 18 of the Company's Code of Criminal Procedure, social and financial crimes such as fraud do not include the direct facts of the lessons received and investigated by litigation. Second, Chinese law is restricted. Tether's registrars and offices are all foreign, and Korean police have no advantage over the decision than USDT advisers, banks, cryptocurrency storage and exchanges.

At the same time, when comparing the research on reliable coin leadership, the Director of China is meeting with many. First, administrators are insufficient and unclear legalized by understanding the USDT and other reliable coins. "Notification requires the Pedicame Risk" provided by China's Bank of China's indeed that the bitcoin is a virtual-object. Provided in 2017 region "funding security" is prohibited illegal. Payment. The normative file does not mention the rules of theDDF intentionally, as the rule definitions and will be understood. "China's digital RMB R & D Manual," the first-mention 19 January 2020 stabilized coins (China's auto-firmly Global Monetary System, Department of System, it will provide a number of dangerous and challenges to the border-border control (RMB R & D Servable crowd, 2021). This is increasingly concerned with respect to the stabilization to financially maintain the laws of my country, but now in the matter ANTRENCY LEVELES OF WHILE.

Second, our country does not yet have clear goals and management procedures for stablecoins, and governance procedures and standards have not yet been announced. The Financial Security Advisory Board has provided advice on 'same risk, same job, same care' to effectively access fixed assets, for example leading companies, global financial giants, and advocates for the prevention and control of capital assets. risks, regulation, transparency and financial companies such as money laundering. Approval, approval by the International Securities Regulatory Commission "Global Stablecoin Initiative Report" to include fixed assets with payment performance in the basis of the financial services sector CPMI-IOSCO In other words, approval of the Basel Banking Committee We apply the strictest rules. All of the global financial companies mentioned above pose a risk of very stable returns and have clear regulatory procedures in place. On the other hand, the failure of financial regulation and the establishment of blockchains like the Korean stable coin create problems of the rule of law and justice.

Finally, our national regulators do not have the tools to manage properly and it is difficult to monitor, identify and eliminate the USDT risk. First, according to the principles on the ground, regulators have no legal control over Tether offshore, Bitfinex, and other advisers and exchanges, and second, existing financial protections and currency oversight are currently blind and gaps in oversight. of USDT. . Supervision is difficult because many USDT markets in the market occur at home and abroad, and income from bank accounts and third party payments. Faced with the problem of managing blockchain finance, existing models are often confined to the proclamation of restriction of cryptocurrency or stable currency, and the effectiveness of the law remains to be argued.

Three,Regulatory tee

First, you should clearly detail the Customer expressions. It should be noted that the firm coin is similar to the money of strong and medium fangsong, li LSIGSONG, 2019). Hard coins are not recognized by the state of providing state or personal contact directory of the new "digital amount". Contact the former account management based on the measurement of the body and significant income from the body and credit wei, 2020). The silver triggers are included in compliance with a dangerous and non-profitable coins on the ship. Other stable coins are around the business in one's business, causing the crashes and conflicts that are not proficient in the Central General. Therefore, a firm processing funding, cannot be legal status of the legal state of the French. The investors use the USDT and other stable money for the French change and benefits, and benefits of American dollar with other faults or other funds.

The authors believe that USDT is a real purchasing power repayment instrument represented by dollar-denominated assets which may be in foreign currencies. After the user invests $ 1, Tether puts the user's $ 1 in a bank or deposit account as savings. Consumers and home companies, ties and trustees all establish credit and debt relationships. Tether owes its customers' bills and posts the bond to its supervisor. USDT is proof of the credit and debt relationship between cost and Tether. in US dollars. In foreign countries (like China), USDT in exports is a part of foreign assets i.e. currency notes. In this case, our country may include the USDT in a variety of foreign currency and currency investments and use regulations on foreign exchange, financial protection, etc.

Second, the President of the Privacy Policy is given to a grade of education and grades. The program level, Chinese laws should normally work for the bounds of the USDT related education. According to the principles of business work, the announcement of the USDT's publication and criminal activity and violations of consideration. The lawyer can infiltrate the personality education to decide the controller and the industry changes, depending on the appearance of the behavior. Especially, in the field of crime, investors will follow the leash, fraudulent or legal, according to lessons (according to the section. In the statements of a crime problem, you can use "instructions about criminal issues for the police issues of security issues. There is a crime computer. The victims are guilty and the victim's property is reviewed for investigation, and a lawyer's decision by the lawyer. At the same time , the judge who can use a hearing such as "blacklist" negotiations, order, and "blacklist". In the course of violence and objects back, middle school and needs a transaction to apply for a reasonable exchange , and continued to the necessary qualifications. Justice energy. strength.

At the performance level, we will make our most informed decisions and provide valuable research to help courts resolve USDT issues when faced with a "non-judgmental" decision. In the judgment, the court may note the details of the USDT case comparison, such as the facts of the case, the importance of the dispute, and the details of the dispute. determines and transmits information using applicable laws and regulations. to the court. Binding procedures for scheduling trials in higher or specialized courts (such as financial courts) and for making the most of personal matters. Judges are also encouraged to conduct effective research and assess the benefits of their judicial process, including political, legal and social implications at trial on the basis of financial oversight and financial justice, public interest. and private. Like new or complicated information. In criminal law, illegal fixed parts laws can be enforced to prevent USDT assets from committing crimes such as theft, fraud and clothes laundering, when in public the principle of respect can determine the effectiveness of influence measures. Autonomy of will and protection of legal property. Provides information for legal and regulatory purposes using the provisions of the Additional Rules of Procedure.

In addition, regulators should encourage the establishment of a sustainable heritage management system. Our country can learn from the experience of the United States and international organizations, USDT market access based on the principles of exemption, tolerance and control. Respect first, and adhere to the principle of "same risk, same responsibility and same care". Business management for access to trade, protection of financial markets, currency management and control of cross-border cooperation.

In terms of market access, our national regulators can share and develop entry models. For venture capital firms that are not registered in China as regulators but work for Chinese consumers, the regulators will need advisors and cryptocurrencies. According to the principle of supervision, the directors and effective managers of the exchanges, the USDT exchanger (OTC), work to protect financial markets and marketing advertising responsibilities. In terms of behavioral management, monitoring of USDT payments and other stable currencies can be strengthened, and stable currencies, cryptocurrency exchanges and payment companies and traders using fixed funds must be licensed. prepaid or online application. The upfront payment or "crypto asset payment" license is the same as the third payment license. In the future, we can show stable gains in trade on an ongoing basis, by strengthening the foresight and management of trade and payment facilities, and model the access and functioning of stable financial services.

In the terms of the weekend washed, replace non-visible lines ,ebt and other stableAura, objects, and other elements and other definitions Security calls, and improve goals and functions of bus protection. Second, about private customers, publishers, exchange, and transactions must be strictly made the same process KCC. -Came certificate, renewed medical reviews are weak, and pushing a trade chain is in order to improve banks inspection. Public safety and business money using the USDT funding for places, and improve marks, inquiry, freezt. Identification of exchange transactions, regularly funds and inspection of exchanging sites and criminal conditions ". The fourthness is that the financial financial resume "if you need a call, if necessary, learn from managing the management of the administration there is something, that can take a fixed amount of coupons including. Measurement.

Regarding currency governance, currency regulators should first monitor the development of USDT at home and abroad, strengthen USDT research beyond exit, tour procedures and demand status, and strengthen monitoring and future guidance. USDT and other benefits have been included in the management of foreign exchange and balance of payments between our countries, and have established and strengthened the conditions of consensus, registration and risk management for two exchange rates and sell stablecoins such as USDT and RMB. . The management of domestic and foreign currencies in RMB of individuals or companies identifying unreliable markets, the third is to strengthen data, intelligence and regulatory management technologies, compatible with blockchain, to improve foreign surveillance, collect unreliable data on the account node; And he identifies cryptocurrency exchanges, trusted exchanges, and speculators as risk-averse. The central principle is to prevent the USDT from interfering with the exchange. If necessary, we will restrict the use of USDT and other fixed income currencies in the domestic market.

From the point of view of the management system and administration in my country, and work partnerships and maintenance and new metal maintenance. Stabilization coin improvement and maintenance of standard standards around the world. The frame used. At the same time, the bank will be the first part of the sandbag ", and the company used in sandbox. October 2020, the pattern "draft of the Republic and Politics and Pattern Digital Draft" or resume market in the store. Ecology, and opening home at home and foreign apply situations.

Fourth, the conclusion

As a very important 'passport' in the cryptocurrency market, USDT has become increasingly popular due to the increase in total private cryptocurrency and demand for capital from Chinese investors. As fixed assets slowly spread in traditional financial markets, they will pose a greater challenge to current financial governance and the rule of law. In the absence of a law providing decision-making information, China should measure the USDT risk of financial instruments, adhere to the decision schedule and standards, in accordance with precautionary procedures in accordance with the Security Law and health protection at work. Formalization objective for USDT and other fiat currencies. Countermeasures protect securities. It is important that regulators timely integrate the stable currency USDT, a new form of blockchain financial innovation, into their regulatory vision and policy, and change regulatory strategies and methods to improve the international competitiveness of the renminbi and protect its interests. Entrepreneurs and managing the financial security and security of our country are key strategies.