China Issues New Regulations for Blockchain Related Companies

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The Cyberspace Administration of China (CAC) has issued new regulations for blockchain related companies that are operating in the nation. The announcement was published on regulator’s website.

As per CAC, the guidelines will come into effect on 15th Feb., were developed to contribute to the healthy growth of the industry.

The document explains the firms that are subject to regulations as websites or mobile apps that provide information and technical support to the public using blockchain. As soon as the regulations come into power, they will be required to register their domains, names and server addresses at the CAC within 20 days.

The guidelines require blockchain startup to enable officials access to stored data and introduce registry procedure that would require mobile numbers or ID card from its users. Furthermore, they will be needed to oversee content and censor information that is banned under current Chinese law.

If a company failed to comply with the regulations, it might face fines from 20,000 to 30,000 yuan ($2,900 and $4,400, respectively). In the case of serial offenses, the company may face a criminal investigation.

China initially released draft guidelines in October for blockchain firms, which further contained recommendations that sought to abolish anonymity in the blockchain.

 China is mainly piloting blockchain legislation in three regions – Beijing, Guangzhou and Shanghai. As per a report in December by local finance publication Securities Daily currently, there are 11 blockchain-related policy projects concentrated in these areas.

Meanwhile, the company had upheld a de facto ban on domestic crypto trading since 2017, which was completed in February 2018 when the government added international cryptocurrency exchanges and Initial Coin Offering (ICO) websites to its Great Firewall. The decision was supported by the People’s Bank of China, the nation’s central bank, and regulators.