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The cryptic angst of China has not shown signs of subsidence when we enter a new year. Another set of restrictive rules has just been implemented for blockchain companies in the People's Republic.
Data privacy not applicable in China
The Cyberspace Administration of China (CAC) has just introduced more regulations for companies that deal with distributed ledger technology. According to the official announcement, the new guidelines will come into force on February 15th.
In the typically draconian way in which the Chinese government operates, the new regulations require that startups allow the state to access the archived data. It also allows the regime to censor what it considers to be sensitive content under China's vast censorship laws. The rules also require that companies deliver the personal details of their users, including identification records and phone numbers.
The regulations apply to websites and mobile apps in China that provide blockchain services or technical support to the public. Once implemented, companies will need to register their domain names and server details to the CAC within 20 days or face heavy penalties.
Fines for a wide range of new blockchain offenses range from 5,000 to 30,000 CNY (from $ 740 to $ 4,440). The announcement added that criminal law will be applied for serious crimes.
The press release states that these new regulations "will promote the healthy development of blockchain technology and related services", however they seem to reach the exact opposite. The regulations were originally drawn up in October 2018.
In the past year, China has also been heavily involved in cryptography social media channels, before turning its heavy hand on gaming platforms in its constant effort to control the Internet. He has no regard for data privacy and clearly sees that the only feasible blockchains inside the country should be those controlled by the state. In November, the People & # 39; s Bank of China issued another warning on cryptocurrencies that have already been banned in the country; "Cryptographic activities that are not issued by the government do not have legal status equivalent to legal currencies," he said.
This last repression is part of the ongoing war on encryption in China that began in late 2017, when it banned trade, commerce and ICOs. The aggressive attitude has forced hundreds of technology companies and blockchain to escape from China and move to more friendly climates such as Hong Kong and Singapore. China is showing no sign of releasing its increasingly tight grip on the Internet and the flow of information within its borders.
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