A new regulation for blockchain related firms has been put in place in China, and it is expected to be effective Feb 15. The detail of the regulation was published on the website of The Cyberspace Administration of China (CAC) on January 10.
New Regulation For Blockchain Related firms in China
The goal of developing the blockchain industry as well as contribute to the healthy development of the industry in China has made The Cyberspace Administration of China (CAC) introduce new regulation for the blockchain related firms in the country.
The firms that are subjected to the new regulation as described by the press release of the CAC are websites or mobile apps that provide information and technical support to the public through the use of blockchain technologies. Immediately the regulation becomes effective by Feb 15 the firms are required to register their names, domains, and server address at the CAC within 20 days afterwards.
Also, the feature of the regulations require the startups to give the authorities access to their stored data and to introduce registry procedures that would require ID card, the mobile number from its users. This will enable overseeing content and censor information that is banned under the present Chinese law.
The release further noted that if a firm fails to comply with the new regulation, it will face the penalty of about 20,000 to 30,000 yuan ($2,900 and $4,400, respectively). In an instance of serial offences, such a firm will encounter criminal investigation.
Crypto and Blockchain Regulations In China
China’s effort towards blockchain regulations was first introduced in October 2018, with a drafted guideline for blockchain firms. This was also inclusive of recommendations that aim at the elimination of anonymity in the blockchain industry.
Also, at the moment China is piloting blockchain legislation in three regions of the country which are Beijing, Shanghai, and Guangzhou. And there is about 11 blockchain related policy that is going on in these regions.
Despite the interstate of the Chinese government in blockchain technology, the country has been at loggerhead with the Cryptocurrency industry. This has led to the introduction of laws to outlaw the use and trading of Cryptocurrencies in the country in 2017 and 2018 respectively. This has led to the exile of Chinese crypto startups to the countries where the Cryptocurrency industry has better regulations that make it conducive for its users and investors.