2022-10-04

On April 9, 2021, the Distributed Storage Office of the China Communications Industry Association reminded distributed storage technology service companies not to release the so-called IPFS /filecion investment and wealth management products in violation of regulations , let alone organize and participate in illegal fund-raising activities.

The Distributed Storage Office of China Communications Industry Association promotes the sound development of the IPFS industry

The Distributed Storage Office of China Communications Industry Association pointed out: According to the “Regulations on Prevention and Handling of Illegal Fund Raising” that will be implemented on May 1st: Anyone who has not been approved by the financial management department of the State Council or violated the national financial management regulations shall be promised to repay the capital. The act of absorbing funds from unspecified objects, such as paying interest or giving other investment returns, are all illegal fund-raising.

As the filecion blockchain project based on IPFS technology has recently been sought after by the market, distributed storage technology service companies in various regions have also launched a variety of software and hardware technical service options in due course. However, during online and offline promotion, some companies overemphasized storage benefits and future expectations, and extended their technical service classification to different types of financial products, causing participating units, individuals and even the economic management departments to mistakenly believe that they are releasing investment and financial products. This kind of behavior is extremely harmful to both the enterprise and the industry. The Distributed Storage Office requires all units to promote propaganda must be accurate and standardized, and eliminate all content that may mislead the society.

In fact, for companies, units, and individuals that voluntarily participate in the construction of the country’s new infrastructure and big data centers, entrusting technology companies to develop software, hardware procurement, data center operation and maintenance, space leasing, and storage server hosting are mature routine businesses. Technical service fees, settlement methods and how to allocate are determined by mutual agreement. This is in line with Internet technology service practices, and the rights and interests of both parties will be protected by law.

The Distributed Storage Office of China Communications Industry Association promotes the sound development of the IPFS industry

Director Xin Bingqian of the Distributed Storage Office of China Communications Industry Association pointed out: In recent years, many companies related to IPFS and distributed storage have appeared in the society. In name, it is a cloud service company or a technical service company, but in reality it is a pure sales company. By entrusting technical service providers, they establish independent nodes, package and build, and they mainly carry out sales work. Such companies will also adopt various mechanisms to open branches in many places to promote and attract investment.

Currently, in the field of IPFS distributed storage, the biggest risk is being passed on to market terminals through technology service companies. A technical service company may serve multiple sales companies at the same time. Assuming that a sales company is suspected of illegal operations, the technical service party will be implicated and cooperate with the investigation. At this time, all previously served enterprises may lose technical support and daily operation and maintenance of data center storage servers at the same time. Even if there is a problem with a technology company, the consequences for the industry are unimaginable.

Director Xin Bingqian said that in order to help the new infrastructure and promote the healthy development of the distributed storage industry, the Distributed Storage Office is willing to help technical service companies carry out self-examination and avoid risks. For the existing legal risks, the distributed storage office will assist in solving them in order to meet the upcoming special rectification work.

The Distributed Storage Office of China Communications Industry Association promotes the sound development of the IPFS industry

The China Communications Industry Association was established in 1991, under the unified leadership of the Central and State Organs Working Committee, the Ministry of Civil Affairs registered, and under the guidance of the Ministry of Industry and Information Technology, it conducts industry management, information exchange, business training, international cooperation, and consulting services. The Distributed Storage Office of China Communications Industry Association was established in early 2021, and the director of the office was concurrently served by Xin Bingqian, Secretary-General of the IPFS Special Committee of China Communications Industry Association.

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