China Regulates Blockchain

Dawid Paluch
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The Cyberspace Administration of China (CAC) has released draft rules to regulate info services based on the blockchain. China’s Internet censorship agency published the new policy on Friday.

 

A few years ago China was the most significant player in the crypto world. However, the Asian country has changed the course and now has a very restrictive approach to blockchain-related topics. Since the beginning of the year, there have been bans on ICOs, shutting down the exchanges and a desire to ban the mining.

 

New policy

The Cyberspace Administration of China, government’s censor of the Internet, published new draft rules on Friday. The policy, called “The Regulation for Managing Blockchain Information Services”, is still being enacted and waiting for the public feedback. The draft will remain open to the public consultation until 2.Nov.

The publication has 23 paragraphs od regulations concering all blockchain startups. Under the proposal, every blockchain entity would be forced to register with the CAC. Every company would have 10 days for the mandatory registration since the launch of its platform.

The draft would be one of the first documents regulating the blockchain industry in the country.

 

The price of information

The proposal orders that startups have to provide information about themselves for the public, including name, service type, industry field and server address. The CAC will also conduct annual reviews.

The regulations would order service providers to censor any content threatening national security and allow the law enforcement to inspect the stored data of users.

Users would also have to give information about themselves. The regulation, if enacted, would force services to ask users for their real name, ID card number and phone number.

The CAC does not clarify what types of blockchain startups will fall under new regulations. However, the publication explains, how long the service providers have to store the data:

 

Service providers must store the logs and content published by users of their blockchain services for six months and provide this information to law enforcement when required.

 

Currently, the public can submit comments to the new regulations. After Nov.2, the draft will go on to the next step.

 

Image by 360b / shutterstock.com

 

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