Li Huo, the Managing Director of Huobi Capital, recently gave a keynote speech concerning the development of Blockchain Technology at the Dezentral Summit in Berlin Germany on September 6, 2018. According to the press release, over 1,000 blockchain enthusiasts, investors, and experts from over 30 countries attended the summit to discuss the current and potential future of the blockchain ecosystem.
From National Regulations to Applications and Innovation
The Dezentral 2018 Conference covered topics in the blockchain industry that ranged from regulation to applications, the design of the underlying the blockchain architecture, and blockchain innovation.
There were over 40 speakers which included Arthur Breitman, the CEO, and co-founder of Tezos, and Meltem Demirors, the chief strategy officer of CoinShares. The speakers spoke extensively of the situation concerning the blockchain market in Germany and the blockchain market on a global scale.
Li Huo mentioned in his speech that while the Chinese cryptocurrency environment has been fairly rocky in the last few years, Huo is confident that the blockchain industry can grow stronger with more robust regulations.
Better regulations will lead to a clearer paradigm or framework for companies operating in the blockchain space, which can lead to greater development of the blockchain industry. He noted that there were great opportunities to cooperate in the cryptocurrency sector between Europe and China.
Huo’s positive outlook for the future of blockchain and cryptocurrency regulation is important considering Huobi Capital, one of the sub-branches from the Huobi Group that focusses on venture investment in the blockchain industry, believes that blockchain technology is much more than an underlying technology.
It is a “social instrument to reconstruct productive relations and build trust.”
Harsh Cryptocurrency Regulations Persist in China
While Huo may be optimistic about the Chinese cryptocurrency and blockchain environment in the future, cryptocurrency regulations in the last few years have been extremely harsh. In September 2017, the Communist nation banned cryptocurrencies and initial coin offerings (ICO) from the state.
China has also clamped down further on cryptocurrencies by closing off over 120 cryptocurrency exchanges and blocking blockchain and cryptocurrency news accounts on WeChat just last month in August 2018.
According to the South China Morning Post, people are speculating that the recent additional crackdown is to ensure that cryptocurrencies cannot post a financial risk and cause any instability in the nation.
“Without Government’s control, cryptocurrency could become instruments for drug dealing, capital outflow, terrorists and other illegal activities,” said Felix Yang, an analyst from Kapronasia, a financial advisory firm located in Shanghai as Yang spoke to Forbes. “The Chinese Government is not reluctant about the development of blockchain or cryptocurrency under one condition — if it is manageable.”