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The authorities in China have promulgated the draft rules on blockchain projects for public consultation, in a process that should last until 2 November.
The Cyberspace Administration of China (CAC) has begun its consultation phase this week, with new rules that are said to be designed to protect companies, investors and the public from blockchain projects.
At the same time, the proposals aim to promote the development of blockchain technology and the emerging industries around the technology of ledger distributed in China. However, the plans have already raised criticism from some in the industry regarding concerns that could hinder innovation and development.
The proposals will require real accounts and registration for all blockchain projects, with the request that the user data be kept and made available for inspection for up to six months.
According to the CAC documentation, the new rules oblige blockchain service providers to collaborate with authorities in overseeing and inspecting user data.
"Blockchain-based service providers should work with authorities to perform supervision and inspection, and provide the necessary data and technical assistance," he noted.
Blockchain companies must also register with the authorities within 10 days of the constitution, with licenses subject to the correct registration, monitoring and reporting of user data.
The CAC also said that there would be more emphasis on self-regulation blockchain, saying it would implement measures for "the industry to strengthen self-regulation and set industry standards, educate service providers and promote credit rating system ".
With the mixed initial feedback, it remains to be seen how the consultation will influence the final proposals. But with the blockchain regulation firmly in the crosshairs, it seems certain that the conditions for blockchain businesses in China could become narrower in the near future.
