The Chinese internet watchdog has imposed some new stringent regulations on blockchain firms operating in the country. The highlight for Friday was the publication of new regulations by the Cyberspace Administration of China mandating that blockchain-related information service provider register users using national ID. Number, real name and censor postings including maintaining a database of users’ data.
The Stringent Demands
This regulation was necessitated by an open letter posted student activist in the country on the web six months ago about an alleged sexual harassment cover-up on blockchain which cannot be deleted or altered, Ethereum blockchain; this attracted censor on the country’s mega social media platforms such as WeChat and Weibo.
Currently, the draft regulations by China’s internet censorship regulators has been opened for public consultation until November 2, an excerpt from the draft stated;
“The implementation of blockchain information services within the territory of the People’s Republic of China shall comply with these Provisions. Where there are other provisions in laws and administrative regulations, such provisions shall be followed.”
Based on convention, these blockchain startups re mandated to file in their registration form via the National Internet Information Office service management system. Also, there is a deadline of 10 working days attached to the demand, and it starts counting from the date of providing the service. The gist is that these blockchain firms have to conduct a thorough inspection of users and their identities as well as providing the real document the company.
No Longer a Surprise
This might come as a surprise if Malta is making this regulation or Switzerland, but for a country like China, it does not amaze much as this perfectly suits the existing regulations on blockchain media platform which was implemented following a cybersecurity law in 2017 raising privacy concerns.
Another fact worthy of mention is that despite Chines government banning ICOs and cryptocurrencies and clampdown on crypto publications, events, and trading, the application of its bedrock technology is still under development. The Chinese government has been seen as a fan of the blockchain technology with over $3 billion in blockchain-focused funds.
Even the president of the people’s republic of China, President Xi Jinping has rekindled the hope of blockchain innovation in the country by reaffirming that the fintech will remain as one of the core technologies which the country would set priorities on in the following years.
Also, under China’s Ministry of Industry and Information Technology (MIIT), the country’s Electronics Standardization Institute (CESI) has initiated an attempt to release three blockchain standards for smart contracts, privacy, and deposits just to improve the country’s development of the blockchain sector.