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Blockchain
China is falling hard on blockchain companies, although the government seems to prefer the blockchain on cryptocurrency. The Chinese administration of Cyberspace (CAC) has announced new regulations on January 10 that will force blockchain platforms to eliminate "unwanted" content, providing authorities with access to private archived data and to verify the identity of users.
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"Rules to promote the healthy development of the Blockchain industry"
The Chinese measures for managing Internet information services, which will come into effect on February 15, "will promote the healthy development of blockchain technology and related services," the CAC said in a press release. He said that the rules are built to "safeguard national security and public social interests, [and] protect the legitimate rights and interests of citizens ".
China has blocked virtual currencies since 2017, when the government outlawed the first coin offerings and prevented the exchange of domestic cryptocurrencies from operating in the Asian economy.
But his government seems to tolerate the technology of distributed registers because of its many uses outside the realm of cryptocurrencies. Industries like oil, shipping and agriculture are starting to show interest in the blockchain, the technology behind cryptographic activities like bitcoin.
Rigorous registration requirements for users
Blockchain companies will now be required to register users with their actual names and national identity or mobile number, eliminating the content that Beijing deems unfavorable. Companies should "immediately release" the archived data that the state considers a threat or violation of existing national laws. The new regulations indicate:
The blockchain information service provider must implement responsibility for the management of information content security and establish and improve management systems such as user registration, information review, emergency response and security protection … If the user does not authenticate, the supplier blockchain information service does not have to provide related services.
Companies will also be required to report to the government any new updates to their product range and to "accept social supervision", in compliance with stringent registration requirements. Entities judged in violation of the rules could be subject to fines or court proceedings, the CAC said. Fines vary between 5,000 yuan and 30,000 yuan (from $ 700 to $ 4,400).
The CAC states in its new regulations that it is working to strengthen the blockchain industry. He says he intends to "strengthen industry self-discipline, improve industry standards" and drive blockchain platforms "to promote the construction of the industrial credit rating system," among other things.
What do you think of the new rules that drive blockchain companies in China? Let us know in the comments section below.
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