China And Blockchain Regulations
On Thursday, the Cyberspace Administration of China (CAC) published a new document called “Regulation for Managing Blockchain Information Services”.
The agency has approved a set of regulations for blockchain service providers in the country that will enter into force in February.
In October, we reported that the CAC had published the draft rules concerning blockchain. As it turns out, it took two months for the public to approve that proposal. Now, the document will be implemented.
Blockchain information services
The agency published the rules on its website on Thursday. The regulation has 23 articles listed on it. One of them requires from blockchain service providers to register with the Cyberspace Administration of China within 10 working days of starting.
The CAC also wants from blockchain startups their names, service types, server addresses, and types of companies. Due to this, China authorities will be able to cease the activity of firms, which “produce, duplicate, publish, and disseminate” prohibited information or content.
Failing to comply with the rules
If blockchain companies aren’t able to follow new regulations, the agency will issue a warning at first. A complete failure to act according to the timeline will result in penalties. The fines will range from 5,000 CNY ($737) to 30,000 CNY ($4,422).
The CAC has made a change in the regulations. The draft from October suggested that blockchain startups operating in fields such as news reporting, publishing, education, and the pharmaceutical industry also have to obtain licences from the relevant authorities.
The regulation will enter into force on February 15.
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