Monday, June 17, 2019

China Demands Blockchain Companies to Enforce Censorship and Store Data

The new rules of the Chinese Government demand that Blockchain companies censor content on their platform, store data, and also grant the authorities access to User IDs. The government stated that this would “advance industry’s healthy and orderly development”, according to a recent report by Reuters.

China Enforces Stricter Measures to Regulate Blockchain Companies

Per the report, China’s government is enforcing stricter measures to regulate Blockchain companies and the crypto industry as a whole. The new policy demands that firms in this industry censor content, store data, and also provide authorities access to customers’ IDs. These IDs could include information such as name, national ID, and phone number, etc.

Reportedly, Cyberspace Administration of China (CAC) had first drafted the rules in October last year. The regulator recently stated that the proposed rules would be enforced from the start of next month. That being the case, any company found wanting could face the full force of the law regarding fines or prosecution.

China’s Banned the Launch of ICOs and Exchanges in 2017

News of this nature emerging from China is no longer a surprise given that the East Asian country in 2017, banned Initial Coin Offerings (ICOs). Reports also reveal that cryptocurrency exchanges cannot be launched in the region in comparison to a nation like Thailand. Before these developments, the Renminbi (Chinese Yuan) was reportedly featured in about 90 percent of Bitcoin trades.

In the same vein, the country’s stance when it comes to cryptocurrencies could impact on the market given that most Bitcoin miners are located in the region. Moreover, China has been rated by Investopedia as the most popular cryptocurrency country in the world. The media outlet also pointed out that the discontinuation of operations by these miners could affect Bitcoin’s supply and price.

China Could be More Receptive of Blockchain Technology

On a more lighter note, Reuters stated that the country might be more receptive of blockchain technology. This was attributed to Beijing’s declaration that they are encouraging researches in the area of the blockchain. They outlined that the distributed ledger technology could have several potentials in tracking the supply chain of products.

Thailand, on the other hand, another Asian country has been encouraging the growth of crypto companies in the region. BTCNN on January 4, reported that Thailand had developed a Blockchain-based voting system whose hybrid is undergoing a pilot. It was also reported on January 10 that the Southeast Asian country has approved three cryptocurrency exchanges and rejected 2.

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