Quantification is the use of technology to earn money in the cryptocurrency world, considered a way to simplify complex operations. However, quantification is a relatively trendy model in China. In recent years, many people have indeed made a considerable amount of money based on quantitative strategies. Some mainstream strategies include well-known concepts like arbitrage across exchanges, statistical arbitrage, more complex strategies such as GPA strategies, and even more complicated derivatives types. There are also some who engage in discretionary trading. For these quantitative institutions to succeed, they must go through several steps. First, they must be Chinese. Second, should they establish a company in China? Third, should they raise funds from retail investors? Fourth, what should be done with the raised funds—should they be placed in user accounts, managed through accounts, or pooled together to operate? Different strategies dictate different attributes, right? Then, if they grow large and attract investors, they would also have to consider building their own pool. They must recognize that this might resemble illegal fundraising, right? Therefore, they think about how to comply with regulations. Someone might suggest, can I set up the entity in the BVI, establishing a legal entity there? Second, if I engage in a fund model, do I need to establish a fund license overseas, especially concerning secondary market fund licenses? Because if you want to handle contracts and options, it may involve issues related to secondary market fund licenses, right? After obtaining this, institutions will also need to deal with the cryptocurrency of Chinese users, or the RMB attributes associated with Chinese users' coins. Some may consider signing an agreement with users, requiring these users to be associated with an overseas entity. Would having an overseas entity sign this investment contract with the institution help avoid legal issues? One must consider this layer, and there’s a fifth layer—the most complex aspect is where the business is located, whether domestically or overseas. If it’s domestic,#GENIUS稳定币法案 there are still associated risks; it may handle illegal purposes under a legal guise. But if I set it up in Hong Kong, many overlook a crucial point: Hong Kong's laws do not permit trading in contracts and options. Under Hong Kong law, quantification can only operate in spot trading. Do you understand what I mean? Then some might say, oh, let’s go to Singapore. As for overseas entities, let’s not delve deeper into that. Anyway, currently, I'm discussing the legal knowledge of quantification. I mentioned this in a few minutes; although it was brief, it essentially reflects the spirit of legal compliance in this industry.