Data Security Damages Paid in Advance?

[Gunnar Larson]

Check out my new article:
https://litigationfinancejournal.com/data-security-damages-paid-in-advance/

NYCCoin and New York-based Stacks pose a billion dollar question: Are Hong
Kong data rules the same as China data rules?

We recently reported that former
<https://litigationfinancejournal.com/chinas-social-justice-approach-to-litigation-finance/>
Communist
China has not been known for access to justice. In fact, recent protests in
Hong Kong sprung up due to China’s Fugitive Offenders and Mutual Legal
Assistance in Criminal Matters Legislation. Yet Communist China is
experiencing a Social Spring (a transformation from Communism to
Socialism). What role will China’s Communist roots play in future access to
justice?

The Cyberspace Administration of China
<http://www.cac.gov.cn/2021-11/14/c_1638501991577898.htm> (and Hong Kong)
issued new guidance on third-party products and services that cause damage
to users. According to the Cyberspace Administration’s guidance, users can
request Internet platform operators to pay compensation in advance for data
violations.

Hong Kong is the data hub for Stacks, where internet platform operators
shall assume data security management responsibilities for third-party
products and services connected to their platforms. Hong Kong mandates
clarity of data security responsibilities for third parties through
contracts and other forms, and urges third parties to strengthen data
security management, and adopt the necessary data security protection
measures.

   - Stacks’ strong third-party presence in Hong Kong extends to China. One
   of Stacks’ board members has served as a leader of a Shanghai based
   incubator.
   - Stacks maintains a legacy of top investors based in China. With a Hong
   Kong data warehouse, it is safe to say that NYCCoin powered by Stacks
   raises a few cybersecurity concerns.
   - The looming question is if Proof of Transfer (PoX) Stacks’ extension
   to Proof of Burn (PoB), where miners compete by ‘burning’ (destroying) a
   Proof of Work (PoW) from an established blockchain, is allegedly illegal in
   Hong Kong, under the Cyberspace Administration’s new guidance.

PoX, when used for participation rewards (Such as with MIA Coin, NYCCoin
and STX), could lead to miner consolidation. Because miners that also
participate as holders could gain an advantage over miners who do not
participate as holders, miners would be strongly incentivized to buy the
new cryptocurrency and use it to crowd out other miners. In an extreme
case, this consolidation could lead to a centralization of mining, which
would undermine the decentralization goals of the public blockchain.

China, along with Hong Kong, has outlawed various forms of threats to
international peace and security. Hence, Hong Kong likely will support all
reasonable TPF ligations up for consideration.
-- 
*Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>*
MSc
<https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&utm_medium=Search&utm_campaign=MSc-Digital-Currency-North-America&utm_term=blockchain%20unic&gclid=Cj0KCQiAyJOBBhDCARIsAJG2h5ctwwMz0MRbVSk-LaYD-GMU5UgDSw7ynxbGr_a7SkaFAZzJc1-pzxEaAi4NEALw_wcB>
- Digital Currency
MBA
<https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovation-mba-1-5-years-or-3-semesters/>
- Entrepreneurship and Innovation (ip)

G at xNY.io
+1-646-454-9107
New York, New York 10001
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