China Might Require Blockchain Users to Register with their Names and ID
During the last couple of years, China has shown a negative attitude towards digital currencies, as mining, trading and using crypto have been heavily regulated. Despite this aspect, the country has shown massive interest in blockchain technology and the benefits it can bring to the economy.
According to recent reports, while China remains supportive of blockchain, it wants to thoroughly regulate how the tech is used, and who has access to it. Based on this, the Cyberspace Administration Agency of China has published a legislative draft that would remove the anonymity associated with blockchain-based services.
With this in mind, the new regulation points out that blockchain services operating locally will have to require users to register using their real names and national identification card numbers. Additionally, businesses using blockchain technology will have to censor content that is considered a threat to national security by the Cyberspace Administration. Lastly, user data will have to be stored for several months, and sent to Chinese authorities whenever an inspection is deemed necessary.
It’s important to keep in mind that applying the regulations is bound to be difficult, due to how blockchains are built. Censoring content is problematic, since distributed ledgers are immutable, and stored data cannot be modified or erased unless network consensus is achieved. However, the other two rules can be enforced to a certain extent, despite no guidelines being published so far.
It is believed that the new regulatory draft is a direct result to a recent scandal that took place in China. An activist used the Ethereum blockchain to publish an open letter related to a possible cover-up for a sexual harassment crime that took place at a well-known University in the country. The letter was initially published on WeChat and Weibo, two popular social media platforms, yet was quickly censored. The activist posted the letter on the Ethereum blockchain, in the description of a transaction he sent to himself.
The regulatory draft isn’t applicable as of this moment. The Cyberspace Administration has only published the draft on its website, where it’s open for public debate and consultation until the 2nd of November. Afterwards, the country’s government will decide whether to translate it into law, and start enforcing it.
Based on everything that has been outlined so far, the decision is bound to impact online anonymity in China alongside several blockchain-based social media and forum projects that are in the works.