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The Chinese blockchain industry is going to be subjected to heavy controls while the Chinese cybernetics administration (CAC) has introduced new rules for blockchain companies operating in the country.
The regulatory body has published this ad on their website, stating that the new regulations will come into force next month and advance the healthy and orderly development of the sector.
According to the published document, all companies linked to the blockchain include websites and mobile apps that provide information or technical support to the public blockchain technology they are subject to anti-anonymity regulations.
Strict anti-anonymity regulations
As soon as the regulations come into force on February 15, 2019, all companies linked to the blockchain will have to register their names, domains and server addresses at the CAC within 20 days.
New blockchain platforms will be needed to implement the stringent Know Your Customer (KYC) measures such as requesting the registration of a real name for users via a national ID or phone number. Furthermore, blockchain startups must allow authorities to access any data stored by users or the company.
Blockchain the companies will also be obliged to supervise all contents and to censor information so that they comply with Chinese law.
Failure to comply with these new regulations can result in fines everywhere ¥20,000 a ¥30,000 (approximately US $ 2,900 to US $ 4,400). Or for more extreme offenses, a judicial proceeding can occur from the CAC.
The move to implement these anti-anonymity regulations has been ongoing for some time. Already in October 2018, the CAC published a draft guideline that included the elimination of anonymity in the blockchain.
The position of China on Criptovaluta and Blockchain
The new anti-anonymity rules imposed by China are by no means a surprise.
The communist country has a very strict policy to censor the content and privacy of data. The government wants to remain in full control to develop and advance its nation in an orderly manner.
Because the cryptocurrency and blockchain technology have the potential to provide people with great freedom and privacy, the Chinese government feels the need to implement these strict rules.
Moreover, this is not the first time that the Chinese government has collapsed on cryptocurrency and blockchain. Back in 2017, the Government has banned initial money offerings (ICO) and the cryptocurrency exchanges blocked from operating within the country.
In addition, in February 2018 the government made it even more difficult for Chinese cryptocurrency investors to participate in the addition of international cryptographic exchanges and initial coin bidding sites (ICOs) to the Chinese Great Firewall.
Overall, however, blockchain and cryptocurrencies continue to be used in China.
In addition to hindering innovation in the crypto industry, the Chinese government is piloting blockchain legislation in 3 regions: Beijing, Shanghai and Guangzhou. You are doing this to better develop the blockchain industry and find a balance between innovation, regulation and security.
Are you agreeing with China's approach to cryptocurrency and the blockchain industry? Will these laws harm China in the long run by forcing innovation out of the country? Let us know what you think in the comments section below.
