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China imposes blockchain rules to enable orderly development

SHANGHAI (Reuters) – Chinese blockchain platforms will have to censor content, allow authorities to access archived data and control user identities according to the rules set by Beijing on Thursday.

China's cybernetic administration (CAC) said the regulations, which will come into effect next month, "will promote the healthy and orderly development of the sector".

China has crumbled cryptocurrencies since 2017, when the government banned the first coin bids and prevented local cryptocurrency trade from operating nationwide.

Blockchain platforms will now be required to implement real-name registration for users via a national ID or phone number, censor content and store user data.

Companies found to be in violation of the rules could be subject to fines or court proceedings, the CAC, which issued a draft regulation in October, added in a statement.

Despite its repression, Beijing claims to encourage research into blockchain technology, which is best known for recording bitcoin transactions, but is increasingly being used in areas such as crude oil trading or supply chain monitoring.

Reporting by Josh Horwitz; Editing by Brenda Goh and Alexander Smith

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