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NEO founder says blockchains and cryptos are vastly overregulated

09 Nov, 2018
by Richard Allen
News
NEO founder says blockchains and cryptos are vastly overregulated

Da Hongfei, founder of NEO, said in an interview with 8BTC that he believes blockchains and cryptocurrencies are vastly overregulated.

“In essence, blockchain can barely survive within the existing financial regulation system. A licensed institute may find it unnecessary to cooperate with a blockchain company because it is already licensed to conduct the business. Why would it bother to be engaged in a partnership that doesn’t benefit it that much? If blockchain companies end up with no license, they won’t be legally permitted to promote massive adoption of applications,” he said.

Several months ago, NEO, as well as several other ICO-funded blockchain projects, offered refunds to buys in an attempt to comply with China’s new ruling on ICOs. According to CCN, one of the projects that was affected is built on the NEO blockchain, Red Pulse (PHX).

In essence, blockchain can barely survive within the existing financial regulation system. A licensed institute may find it unnecessary to cooperate with a blockchain company because it is already licensed to conduct the business. Why would it bother to be engaged in a partnership that doesn’t benefit it that much? If blockchain companies end up with no license, they won’t be legally permitted to promote massive adoption of applications.

Hongfei was then asked about NEO’s recent moves into the game industry, making reference to the BEO-owned company NewEconoLabs that sponsored the Blockchain Game Development Competition. Hongfei responded by saying the move came as a result of the regulatory barriers imposed upon blockchain companies when operating in the financial industry, barriers that aren’t present in the game industry.

“In the future, blockchain games may present a virtual world similar to that constructed in the sci-fi film “Ready Player One” where all the virtual assets are recorded on the blockchain, the implementation of which requires a flawless economic model. However, we can’t predict the timing of such games. I hope that someday blockchain games can even be played by my daughter,” he exlplained.

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Read more about:NEO (NEO)

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