China to Bring New Blockchain Regulations Next Month in February
Last week, January 10, the Cyber Space Administration of China (CAC) announced new regulations dubbed as China’s Blockchain Information Service Management Regulations. In its official press release, the CAC said that the regulations will come into force from next month, February 15.
Furthermore, it notes that the regulations are introduced to “safeguard national security and social public interests, [and] protect the legitimate rights and interests of citizens”. It will also “promote the healthy development of blockchain technology and related services”.
Although China has brought a blanket ban to ICOs and cryptocurrencies operating within the country, the country has doubled-down its efforts when it comes to blockchain development. Currently, China holds the most number of patents in the blockchain space followed by the U.S.
The Chinese government is currently trying the use of blockchain technology across a number of different industry sectors like government administration, banking, oil, logistics and shipping, etc.
The new regulations puts the onus and responsibility on the blockchain companies to eliminate any “undesirable” content. Moreover, blockchain companies will be required to register users with their national identity, actual names, and mobile number. The government authorities shall get a complete access to the stored data and “immediately release” information which can be regarded as a threat to the existing national laws.
The new regulatory law states: “The blockchain information service provider shall implement the responsibility for information content security management, and establish and improve management systems such as user registration, information review, emergency response, and security protection … If the user does not perform real identity authentication, the blockchain information service provider shall not provide related services.”
Furthermore, companies operating in the blockchain sphere will have to constantly update the authorities of any new product development and to “accept social supervision” as per the new regulations. Any company found violating the laws shall be subjected to heavy penalties anywhere between 5,000 yuan and 30,000 yuan.
The CAC calls this step a measure to reinforce China’s blockchain industry and to “strengthen industry self-discipline, improve industry standards”. The rules are also seen a way to guide blockchain platforms “to promote industry credit evaluation system construction,” besides other things.