Looking back on 2018, it is not an optimistic year for investors of encrypted currencies: bear market strikes; first token sale（ICO） decreased; more stringent supervision. After a difficult year, we look forward to how blockchain can empower the regulatory field in 2019.

The global regulation is becoming more and more strict, and the requirements for regulatory transparency are becoming higher and higher. Many encrypted currency analysts also believe 2019 will be the year of regulation. Of course, investors are demanding more and more transparency in the supervision of encrypted currencies. Dror expects that the transparency of supervision will be improved, which is a major benefit for participants and potential investors in encrypted money markets. Dror said:

“ If ease of use and clear regulation can be achieved at the same time, businesses and consumers will generally adopt encrypted currency.”

Stackr CEO and co-founder Cobus Kruger said, “ We have witnessed a turning point in the regulation of encrypted currencies,” but it is not enough:

“ This ( supervision ) is a necessary condition for survival and growth. Without regulated financial instruments such as ETF, the encrypted money industry will have a difficult time because only a few institutions will adopt it. “

Mergers and acquisitions in the encrypted currency industry are also expected to increase. Robert Viglione, chief executive officer and co-founder of Horizen, said: in the next market cycle, we will have more mature organizations that can use mergers and acquisitions to help them achieve growth during the economic downturn.

“ Bitcoin as a currency has changed the world. In 2019, the new public infrastructure will continue to develop and the private application of blockchain technology will continue to develop, but we expect the marginal impact to be quite limited. These systems still need to become safer, easier to expand and better regulated. “

The role of regulatory agencies is the guardian of order in the financial system, the maker of rules and the sanctions for conflicts. In addition to relying on the regulatory enforcement criteria of laws and regulations, real, effective and credible data are also needed as a guarantee to achieve the ultimate goal of regulation.

Firstly，real-time monitoring of transaction information and underlying assets.

Blockchain can provide a decentralized system operation mechanism, breaking the governance boundary of the Internet, making data truly open and transparent, and improving data traceability based on distributed data storage. As for the supervisory organization, it only needs to be one of the nodes on the blockchain to trace the historical traces of each transaction and monitor the transaction information of other user nodes in real time to check the underlying assets and prevent the occurrence of risk events without waiting for afterwards reporting. This has achieved the so-called “ penetration” and greatly reduced the difficulty of supervision.

Secondly, ensuring the authenticity and credibility of the data.

Once the data is recorded by the blockchain, it will be spread, reached consensus and stored in the whole network. Based on the pattern that the data is widely distributed in the nodes of the whole network, it is impossible for anyone to tamper with the data unilaterally. This feature ensures the authenticity and credibility of the data. However, in the asset management industry, neither party involved in any capital transaction can forge business data, thus making the liquidation, settlement and audit of capital more reliable.

Finally, improving efficiency and reduce costs.

Data sharing on the blockchain can also improve the efficiency of trust transmission in financial services and reduce transaction costs in all links. If the relevant data such as enterprise accounts receivable are included in the storage network of the blockchain, and the data are shared by multiple parties, it will also provide protection for various regulatory fuzzy areas ( such as some emerging Internet financial services ) and can play the role of wind control and credit investigation.

Generally speaking, blockchain technology can inject new energy into the regulatory capital management industry by virtue of its inherent characteristics and advantages, and can meet penetrating, dynamic, efficient, immediate and accurate regulatory requirements, thus further improving the security and transparency of asset management business, maintaining the financial market order in a better way and serving the real economy.

CelesOS is a decentralized blockchain system that provides bottom-level IT services for various financial applications. We will create a “ Wall Street” in the blockchains to provide services to the vast number of financial institutions and users. The innovative consensus algorithm can be truly decentralized and can give consideration to efficiency at the same time. In addition, we will also design special scripting languages to support smart contracts and various applications.

CelesOS allows various types of participants, including financial institutions, regulatory compliance agencies and users. CelesOS can not only support large-scale applications, but also provide safe services for these applications. It can attract regulators, financial institutions and end users to use the system by reducing operating costs and increasing regulatory efficiency.

CelesOS has integrated the framework of laws and regulations through cooperation with regulatory authorities, and has made use of the characteristics of blockchain de — centralization, unalterable ledger, smart contracts and privacy protection to enable institutions to establish blockchain platforms that meet their own needs and develop DApps, thus increasing mutual trust among institutions, reducing compliance costs and improving efficiency.