China announces new regulation for Blockchain companies to "promote healthy development"

Blockchain

China is fiercely opposed to chain block companies, even though the government seems to favor block chains at the expense of cryptocurrency. On Jan. 10, the Chinese Cyberspace Administration (CAC) announced the adoption of a new regulation that will require blockchain platforms to eliminate "unwanted" content while giving authorities the ############################################# 39; access to private stored data and to verify the identity of users.

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"Rules to Promote the Sound Development of the Blockchain Industry"

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The Chinese Blockchain Information Services Management Regulation, which came into effect on February 15, "will promote the sound development of blockchain technology and associated services," said CAC in a statement. Press release. He said the rules are built to "preserve national security and public social interests, [and] protect the rights and legitimate interests of citizens. "

China has cracked virtual currencies since 2017, when the government banned initial coin offerings and prevented domestic currency cryptocurrency from operating in the Asian economy.

But his government seems to tolerate distributed ledger technology because of its many uses outside the realm of cryptocurrency. Industries such as oil, shipping and agriculture are starting to interest blockchain, the technology behind cryptographic assets such as bitcoin.

Strict registration conditions for users

Blockchain companies will now have to register users with their names and national identity or cell phone number while eliminating content that Beijing deems unfavorable. Companies are expected to "immediately communicate" stored data that the state considers to be a threat or a violation of existing national laws. The new regulation states:

The blockchain information service provider must implement the responsibility for the management of information content security and establish and improve management systems such as user registration, information review, and response interventions. Emergency and Security Protection … If the user does not perform real identity authentication, the information service of the provider blockchain does not provide related services.

Companies will also be required to report to the government any new update of their product line and to "accept social supervision" while complying with strict registration requirements. Entities found to be in violation of the rules could be subject to fines or prosecution, said the CAC. The fines range from 5,000 to 30,000 yuan ($ 700-4,400).

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In its new regulation, the CAC says it is working to strengthen the blockchain industry. He says he wants to "strengthen the self-discipline of the industry, improve industry standards" and guide blockchain platforms "with the aim of promoting the construction of industrial systems. credit assessment of the industry, among others.

What do you think of the new rules governing the operation of blockchain companies in China? Let us know in the comments section below.


Images courtesy of Shutterstock.


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