Shyft Welcomes New Members onto Its Advisory Board

Shyft Network has increased the workforce in its advisory team with previous members of the Financial Action Task Force (FATF).

According to a news report published on the 28th of October, a public blockchain company, Shyft is updating their advisory board with Josee Nadeau, the previous head of the Canadian delegation to the FAFT and Rick McDonell, previous Executive Secretary to FATF.

The Financial Action Task Force (FATF) is regarded as one of the most prominent financial regulatory agencies in the world. Even though this agency does not impose its rules on financial bodies, it is of relevance that its policies are adhered to by financial entities across the globe.

In June, the FATF published new rules concerning the regulation of digital currencies. These rules enforce regulations that were previously restricted to the banking industry, onto the cryptocurrency sector.

This new cryptocurrency rule is known as the “travel rule” and it mandates Virtual Asset Service Providers (VASPs) to disclose the private information of every transaction carried out. Failure to comply with this rule could attract sanctions and restrictions on access to international markets.

Shyft is focused on implementing a sector-wide remedy to the FATF travel rule imposed on VASPs through the use of Shyft’s identity passport, bridging of databases, and data certification infrastructure.

This is where the importance of Nadeau and McDonell comes to play. Shyft is expecting the former FATF members to bring to bear their years of valuable experience on the advisory board as regards this objective.

Timeframe for Compliance
The FATF has ordered that local administrations and VASPs have just a year to create a regulatory model that follows the travel rule.

The Chief Compliance and Ethics Officer of Bittrex, John Roth in an interview said that the one-year deadline given to VASPs would not be enough considering the sector’s complexity and the cost of gathering private information of transactions. He went on to say that there isn’t any company in the sector currently complying with this new rule, however, there are ongoing talks on how to handle this matter. He also said that to solve this issue, new untried methods would have to be applied.

Survey Reveals Rising Number of Blockchain Developments in China

The China Electronic Information Development (CCID) made an announcement on the 27th of October stating that the number of blockchain corporations in China is over 700.

A survey carried out by the Committee of the Political Bureau of the Communist Party of China on the 24th of October has shown that amongst the aforesaid 700 blockchain corporations, 83 are research institutes and 34 are financial institutes. Also, about 500 investment events have occurred in the Chinese blockchain sector. The results also show that 12 blockchain agreements have been issued in the country over the first half of the year.

At the beginning of the year, the Cyberspace Administration of China installed some guiding rules, like anti-anonymity rules, for blockchain corporations conducting business in the country. The statement also mentioned some blockchain initiatives at the municipal level.

The CCID has said that the degree of innovation in the sector is at a healthy level. The organization divulged that the number of blockchain patents in China since the beginning of the year is 3,546, and the total patents filed in 2018 was over 2,450.

CCID’s Statement
According to the research arm of the CCID, China has published about 150 blockchain application cases so far this year. The applications are related to 28 areas including finance, medicine, e-government, intellectual property protection and a host of others. However, the organization has said that the applications are still not what it should be.

The CCID is a governing body in China that is vested with the duty of promoting the advancement of information sectors in the country. This body reports directly to the Ministry of Industry and Information Technology.

What China’s President Had to Say on Blockchain
The Chinese President, Xi Jinping has expressed his desire for the country to foster the spirit of adopting blockchain-related technologies to increase innovation and transformation in the country. In an interview with Politburo, Xi said that the Chinese must begin to see blockchain as a crucial factor for innovation of technologies, sharpen their directions, boost their investment, concentrate on fundamental technologies and improve blockchain development and innovation.