Cyberspace Administration of China Releases Draft Regulation Targets Blockchain Startups
Last Friday, the Cyberspace Administration of China (CAC) published draft regulations for public consultation until November 2. The document titled “The Regulation for Managing Blockchain Information Services” specifically targeting cryptocurrencies and blockchain related startups and it will be China’s fist official framework for blockchain industry management.
According to the draft regulations, Chinese users would have to register their real names and national identification card numbers before they can assess to the online information service based on blockchain.
To the companies that provide blockchain-based information services in China, they have to inspect their content carefully and detect post that pose a threat to national security, as well as store user data for authorities inspections.
The new blockchain service providers are required to register with the CAC within 10 days of offering service to the public.
The CAC claims that they are aiming to provide a framework for standardizing blockchain information services and protecting citizens’ rights.
However, some insiders indicated that, tamper-resistant and anonymous are the two characteristics of the information stored on the blockchain, and many blockchain-powered social media platforms normally allow user to post in anonymity without centralised data controlling, but after the rules taking effect, the anonymity would runs contrary to Chinese laws on user data.
Furthermore, some critics argues that the new regulation draft focus on protecting users rights, but lack enforcement procedures to protect the blockchain platforms’ rights.
In addition, the CAC defines blockchain information service providers as “entities offering information service to the public”, as thus, major cryptocurrency net work infrastructure could fall under the rules and Chinese authorities may take advantage to strength their control over the whole blockchain and cryptocurrency industry.
The draft regulations includes 21 articles and the CAC is currently accepting public consultation, but it is still not clear when the rules will take effect.