Blockchain Seeing Favorable Global Regulations and Record Investments
Recently, governments around the world have been putting in place regulations or guidelines that indicate they are beginning to accept Blockchain technology. In one of my previous blogs, I wrote about the increasing adoption of blockchain, and these new regulations and guidelines will only increase investor confidence in the technology and its future potential.
The following is a statement from the digital asset framework recently issued by the SEC:
“For example, take the case of an online retailer with a fully-developed operating business. The retailer creates a digital asset to be used by consumers to purchase products only on the retailer's network, offers the digital asset for sale in exchange for real currency, and the digital asset is redeemable for products commensurately priced in that real currency. The retailer continues to market its products to its existing customer base, advertises its digital asset payment method as part of those efforts, and may "reward" customers with digital assets based on product purchases. Upon receipt of the digital asset, consumers immediately are able to purchase products on the network using the digital asset. The digital assets are not transferable; rather, consumers can only use them to purchase products from the retailer or sell them back to the retailer at a discount to the original purchase price. Under these facts, the digital asset would not be an investment contract.”
This opens up the door for companies like Amazon, Facebook and Alibaba to operate a digital payment network to increase efficiencies and reduce operational costs. The SEC digital asset framework also concludes that not all ICO tokens are securities.
The European Union also recently launched the International Association of Trusted Blockchain Applications to bring together leading companies in the industry and EU policy makers to foster the adoption of the technology in the European Union.
The Chinese government also recently approved and published a list of 197 companies that are allowed to explore and conduct Blockchain related business, and some of the big Chinese companies on the list include Alibaba and Baidu.
Bitcoin is currently on track to end April on a positive note for the 4th consecutive year. Crypto exchanges in Brazil traded more than 100,000 Bitcoin in 24 hours, setting a new record for the country. The record, set last Wednesday, comes on the heels of Mexico breaking its own record for Bitcoin volume in a 24-hour period. Brazil, the largest economy in South America, has struggled lately with economic activity hitting its lowest levels in nine months. This dip in economic activity seems to coincide with the rise of Bitcoin volume in the country.
In addition, investment by large corporations and venture capital firms into Blockchain startups is at a record $850 million in investments so far for 2019. I believe the Blockchain space continues and will continue to see record investments in part because of the ongoing favorable regulations and guidance being issued by the governments of the three major world economies (U.S, EU, China).
Chief Executive Officer