Branch board hit, frequent policy under the STO decide on what path to follow?

This article from the Shenzhou digital (ID:shenzhoushuzi_group), author: Sun Jiangtao (CEO Goopal Group, digital China sponsor), please indicate the author and source.

Any personal efforts in front of the tide of the times will be not worth mentioning, so, at any time should conform to the trend of the times, otherwise it will be buried in the era of tide, STO (Security Token Offering) explorers especially should pay attention to the tide of the trend, in order to avoid risks, flow.

 Branch board hit, frequent policy under the STO decide on what path to follow?

In the previous article, I think the STO (Security Token Offering) as the financial globalization in practice, the situation becomes clearer under the supervision is in the right direction, the Hongkong Securities Regulatory Commission released in early November on the digital currency policy should also support this point. However, as a new thing, it will not develop any policy level (Everything is going smoothly., policy is the biggest risk facing the STO) the wind sways grass will bring the butterfly effect, and even some non direct policies, such as Chinese capital market to open a branch board has caused a lot of people on the STO panic, even believe in under the effect of branch board, Chinese STO will suffer heavy losses.

In fact, the only objective in branch launched the STO effect, and we do not know the future there will be a number of related initiatives will be gradually introduced. With the continuous fermentation of Sino US trade war, Sino US bilateral relations and reconstruction, triggered a worldwide pattern of change has been unstoppable. Plus 2018 coincides with the first ten years of economic (financial) crisis superposition effect, makes the global financial order is facing a dramatic change. As a practitioner, “not just walk down, but also to look up at the starry sky”, in the study of specific STO implementation path and rules before, be sure to look at the trend of the times, otherwise it may be doing even once cleared.

We need to know why China launched by plate, we can better analyze and predict the effect of STO on branch board; we need to know, though China has not yet introduced STO related policies, but China and the United States as the world’s two largest economies, the financial supervision attitudes and practices in some ways consistent, namely through regulation rather than sandbox supervision; we also need to know about, or have been ready to enter the field of STO practitioners, how through supervision and supervision between the sandbox make the most advantageous choice, this is not about the future development, even for the moment of life and death.

The relationship between the origin of a branch, board and STO

A week before the November 5th, in the first Shanghai National Convention Center China International Import Expo opening ceremony, the chairman announced the establishment of the Shanghai stock exchange by the board and pilot registration system. This is the long-term global capital freeze, Sino US trade war, China go again to continue to deepen reform, expand an important measure to open a new road, the Chinese capital market influence, as financial practices are also affected by natural STO.

1, branch board as a national strategy, with the top-level design of this important property plus, will gather more resources, get Easy Access, the expansion of direct financing, innovative companies will be favorable to the relative roots of STO in the short term bearish.

At present, China’s capital market has formed a motherboard, gem, three new board and regional equity market multi-level capital market system, set up in Shanghai Branch Board will make the capital market system is more abundant, bring great change to the ecology of the whole capital market. Commission Vice Chairman Fang Xinghai in a few days ago, has said publicly that the Commission is speeding up the implementation of the relevant rules by board, board and branch registration system must be done. Including millet chairman Lei Jun, many corporate chiefs, have also expressed support.

This top-down support, and actively respond to the Internet circle, investment circle, is slightly grassroots attributes of STO do not have, you can imagine, under policy support, encouraging enterprises innovation board both attributes by the content side of the end of the form, the registration system, will make the frontier science and technology enterprises easier access to financing and access to capital markets. This is undoubtedly to have similar properties of STO caused by diversion effect.

2, STO as a financial asset securitization practice, its main function is to broaden the financing channels, reduce financing costs, increase liquidity, and this branch board in certain intention is very consistent, the rivalry between and not fight at outrance Kechuang board, but can strengthen the relationship of mutual integration.

Branch board and STO are essentially incremental reform, short board board to complete the capital market China branch of science and technology innovation service. STO can not only block chain related enterprises to provide capital support, is relying on the properties block chain without borders and inherent Token financial attributes, through the chain of assets on the chain, greatly improve the traditional global liquidity assets, bring new opportunities for the capital market. The focal point of branch board and STO are through the capital market to provide better support for high-tech start-ups, two are not in conflict.

I did not speculate, look at the domestic policy and the recent trend, in the board decided to open a branch at the same time, the people’s Bank of China issued an article about 2 words the blockchain Research Report, a detailed interpretation of the blockchain what to do and what not to do, it can be considered as the relevant policies before the quasi official voice SFC; even more senior people recently frequently expressed hope more foreign capital to enter the China capital market, in order to increase long-term funds and enhance liquidity; BAT and other domestic Internet giants have already layout block chain even through exploration economics…… The various signs, and fully inclusive and equitable regulation should be the main direction of the future capital market reform and practice.

Deep study of Xiao Lei in the traditional stock and block chain fields that STO will have more of the subject matter, but at present it is difficult to see from the center of the exchange system, so the board may increase branch regulators focus on all kinds of digital assets, and may even use block chain technology to assist the supervision.

In Xiao Lei’s view, I agree, either STO or branch board, has attempted to provide support, and has played a positive role in the capital market for high-tech start-ups. Although they are separated and innovation in different ways, but it is not life and death in the opposite side, but can coexist. STO essence — asset securitization through securitization + securities may be introduced to the new branch board, “by STO for the body, for the use of” mode is not possible.

Two, China will choose to STO through supervision

“Those who do not seek Jesus Christ, seek temporary shortage; those who do not seek a global strategy” on the battlefield of the military point of view is also applicable to business. The launch branch board, as well as domestic a series of signs although has a great influence on STO, but you know, as a global financial practice, STO is not depends on a country’s policies and practices, so to think globally, the trend from a higher perspective and trend.

Recently, it is a heavyweight on the current world situation and economic trends are given and their interpretation of pre judgment: the Paulson foundation said the 74 chairman and Secretary of the Treasury Henry Paulsen before the Sino US pattern has entered a new stage of reconstruction, although the overall “decoupling” economy of the two countries, leading to the possibility of economic curtain falls little, but there is still a risk that resulted in the reconstruction of the pattern of technology — that countries develop their own technology and technical standards, further threaten the global innovation and national competitiveness, already in place.

If the goods, capital, technology and personnel from four aspects continues, a majority of funds will no longer allow the free flow of goods and the global economy. This is the most fatal blow to STO, because the STO asset securitization + securities through securitization is to solve the problem of the free flow of assets, if limited by policy, it will greatly influence the living space of the STO project.

We look at the STO regulatory policy can know, in fact, the United States of STO, and even the entire financial system is penetrating all supervision: to issue the STO project, must comply with the relevant regulations of the U.S. Securities and Exchange Commission or the exemption, will make the relevant provisions of its investors, financing amount. This is in contrast with the sandbox supervision of Britain, Singapore, Hongkong and other places.

Chinese has yet to STO the introduction of relevant policies and regulations, but the degree of attention from the state with the financial and practices continue to strengthen the future can be speculated that if the license STO, must also be through regulation rather than sandbox governance.

This means that for STO practitioners, if you want to develop between the two big countries, must adapt to this through the strict supervision of the state will conform to the policy and the. For example, the current STO programs in the United States is actually more to the exemption, the Nasdaq Stock Exchange once this really join, will change the rules of the game. In Chinese and Kechuang, are not excluded from the securities through securitization as a pilot in the future.

It was noted that, in the past year, whether it is Chinese BAT and other Internet giants or Wall Street commercial giant, they already have the layout. Compared to the relative grassroots from the blockchain startups, these giant who have undisputed advantages in talent, capital, and other aspects of the user, the scene, coupled with the tendency of policy, will undoubtedly have to first in the board or STO post branch. Started from the blockchain field of start-up companies, if you want to carry out STO in the two countries, not only to consider the transmission regulation, but also to identify their role — probably to a large extent, will become a member of the Internet giant or capital predators in the territory.

Three, the sandbox mechanism under STO opportunities

A decade ago, the economic crisis and the winter capital not only let the world financial structure and order has undergone major changes, but also triggered a whole world of business renewal, a new generation of Internet giants as Google, Facebook, Amazon, apple, Alibaba, Tencent, led by Microsoft, IBM gradually replace the old generation of giants. Bitcoin is born at that time.

So, for the blockchain field of entrepreneurial companies, with the help of STO the financial practice complete evolution, is not impossible. In addition to this because Sino US transmission regulation, and supervision of the sandbox is relatively loose, inclusive of regulatory policy.

“Regulatory sandbox” (Regulatory Sandbox) concept by the British government in 2015 years 3 months was put forward. According to the UK financial conduct authority (FCA) definition of “regulatory sandbox” is a “safe space” in the security space, financial technology companies can test its innovative financial products and services, business models and marketing methods, instead of immediately by the regulatory problems in the related activity constraints.

It can be said that the sandbox supervision through active rationally loosen regulations, reduce the rules obstacle of financial innovation, encourage innovation and more actively by the ideas into reality. This approach led to follow Britain in many countries, Australia, Canada, Singapore, and Hongkong has just released the policy of using this way.

The block chain innovation of enterprises, once the abolition of personal bondage, will have great power, as compared to the Internet giant and capital predators, they have a very special advantage, namely after the baptism of a batch of blockchain technical personnel, idealistic entrepreneurs, investment funds early latent, and well ingrained. Block chain thinking, these are precisely the non block chain practitioners do not have, and it is difficult to make up in the short term.

So, a larger dream and majestic attempt to startups, at this stage is to choose the STO exploration in the sandbox supervision of the countries and regions. In the sandbox regulatory policy relatively loose, practitioners have to do is to run through all aspects of STO, the asset securitization + securities through securitization from the conceptual level to practical level. In particular, the background of digital currency in the past year under the tide of speculation, the two class market already have serious notoriety, so STO for his name from the primary market, the only way to keep the state and government approval, so that investors trust, willing to let people understand and accept.

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