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China has enacted new regulations aimed at promoting the "healthy development" of DLP (distributed ledger technology). The CAC has indicated the new regulations on Thursday 10 January 2018. However, the new law also grants the right to the administration of the Chinese Cyberspace (CAC) to oversee node operators and to request private information (information).
The Chinese CAC office officially
released new regulations entitled "Regulation on the management of Blockchain Information Services". The new law will come into force Tuesday, November 15, 2018.
The regulations paint the providers of "DLT information services" with a large dense that defines "provision of information services to the public through Internet sites and uses based on DLT or systems".
In addition, DLT service providers may be an entity or a node that offers the DLT information service to individuals and an organization or facility that offers technical support for the DLT information service.
China issued a draft guidelines in October of last year, which attempted to prevent the use of unidentified (anonymous) DLTs.
The existing regulations are presumably intended to promote the "healthy development of DLT and other related services", but at what cost?
Criminals must be fined
Firstly, DLT service providers will be required to register their server addresses, service types, names, industry sectors and changes made to them in the future with the CAC. This important information would be publicly available and accessible.
The new regulations indicate:
"The DLT information service provider must implement the responsibility for managing information security and establishing and improving management systems such as user registration, information review, emergency response and security protection … If the customer does not perform authentic authentication, the supplier DLT information service must not offer related services. "
In other words, the new law prohibits customers by law to download and run the free and publicly available (usable) bitcoin client software since a "DLT service provider" can be a node that offers the DLT information service.
If they want to do so, they must go through a registration exercise and hand over their private information. Perhaps customers who want to avoid being accused of a fine will use Tor. Tor is a hidden service that allows you to circumvent different firewalls and network address translation equipment.
Currently, China represents 3.98% (or 408) of all connectable BTC nodes, as per BitNodes
data.
Rigorous regulations
For start-up, the guidelines also require DLT service providers to give authorities full access to their information and to have registration procedures in which the customer ID card numbers are essential.
Users who do not respect the new regulations will be charged a fine. It seems that China's position on DLT and Cryptos remains very close. Last month, however, the People & # 39; s Bank of China (PBoC) banned security token offers, according to a
relationship of South China Morning Post.
In general, the regulations appear to be quite stringent. It is still to be noted how they influence companies in China. Considering the encrypted distribution in the year 2017, these regulations are envisaged. However, they could have a significant impact on neighboring India, which is also very soon declaring cryptocurrency regulations, such as Coinidol
reported recently.
