China will impose strict new regulations on companies operating a blockchain requiring them to censor content, allow authorities to access data and identify users.
The Chinese Cyberspace Administration (CAC) has introduced new regulations for companies using blockchain technology that operate in the country.
Under the guise of cleaning up the blockchain sector
These regulations are grouped under the name “Regulation on the management of information services on the blockchain”,
The announcement was posted on the regulator’s website on Thursday, January 10. The guidelines, which come into effect on February 15, were developed with the aim of contributing to the “healthy development of this industry.”
The CAC believes that these new rules are made to “preserve national security and public social interests, while protecting the rights and legitimate interests of citizens.”
After cryptocurrencies, the blockchain
China has been cracking down on cryptocurrencies since 2017, when the Chinese government simply banned ICOs and blocked cryptocurrency trading in its domestic market.
Blockchain technology seems to be tolerated, even if Beijing wants to keep an eye on its use.
Thus, the companies concerned will be required to register users with their name and national identity or mobile phone number while eliminating any content deemed prohibited by current Chinese law.
Entities that violate these rules will be subject to fines or prosecution, the CAC said. The fines range from 5,000 to 30,000 yuan (640 to 3,900 euros).
