CAC Official: Three Considerations of Launching New Blockchain Regulations
January 10, the Cyberspace Administration of China (CAC) published its new “Regulation for Managing Blockchain Information Service” to provide a clear regulatory framework for the use of blockchain technology in the country.
According to the new regulation document, the blockchain service providers are required to register with the CAC within 10 working days through the official blockchain information service filing system. The blockchain startups have to register their names, service types, service forms, application fields, and server addresses. The rules would take into effect on February 15 of this year.
Any company providing information services to the public through internet sites and applications based on blockchain technology or systems within the People’s Republic of China must henceforward adhere to these final draft of regulations.
A spokesman of CAC demonstrated three main considerations of launching specific regulations on this field from governor’s perspective.
First of all, it meets the need of in-depth regulation in cyber information security. As of now, Chinese regulatory authorities have launched a series of regulations to clarify the requirements for network operator in order to ensure the cyber information security, as well as applying safety assessments to emerging technologies.
Launching a blockchain information service regulations meets the needs of Strengthening network information security management.
Secondly, it may facilitate the healthy development of blockchain information service. Enhancing regulation in blockchain information service management, guiding blockchain information service providers to fulfill the filing procedures is very important in building up a comprehensive information security management system. Which may boost the development of blockchain and related service to some extent.
Finally, it meets the need of risk prevention in blockchain information service. As an emerging technology, blockchain develops at a rapid speed. It not only brings tremendous developmental opportunities to the country’s economy but also benefits people’s everyday life.
However, it can also be used by some outlaws to conduct activities that present a danger to national security, disrupt social order, and infringe on the legitimate rights and interests of others. As thus, launching the new regulations is very useful in risk prevention.
Although the Chinese government has been historically wary of cryptocurrency, it still holds an optimistic attitude towards blockchain technology and the new regulations are aiming to promote a healthy environment for blockchain development in China.