Chinese media reports that last year, netizens in China have used Blockchain technology to record the ‘open rape letter of North university student’ as the evidence (which had happened 20 years ago). So to preserve the national security and public interest, Chinese officials on Jan 10, 2019, have released ‘new regulations on the management of blockchain technology’ which will come into effect from February 15, 2019.
Blockchain seen as a threat by China
A note from the official announcement said;
The Regulations on the Management of Blockchain Information Services has been reviewed and approved by the Office of the Internet Information Office of the State Council and is hereby promulgated and will be implemented as of February 15, 2019.
Since any record or transactions entered via blockchain cannot be altered, officials reviewed that people in China are employing blockchain to spread the illegal information. As such, they’re exploiting the public interest. With this in consideration, China’s National Internet Information is stepping up with new frameworks for blockchain application within the country. Consequently, the new regulations will be enforced from Feb 15 and any person violating the rules will be punishable by fines or prison. These regulations impose responsibilities on the ‘main body’ that help operate blockchain technology or the platform providing blockchain services.
The registrations of new service launch have to be made with the ‘the Cyberspace Administration within 10 days’. In case of changing the service, it has to be informed to administrations within 5 days. Lastly, if a service provider intends to stop blockchain service, they’ve to report to the authorities within 30 before the termination of such service.
Note: The violation of any rules would result in blockchain operators to pay at least 30,000 yuan ($4450) or responsible for the crime (as per the law).
Regulations on the Management of Blockchain in China
Chinese regulators have been scrutinizing the ‘crypto-related matters’, forming the effective frameworks since quite long. However, the draft of latest blockchain management release came into light first in October last year but the version released on Jan. 10 seems the final report. Accordingly, the blockchain service providers of China have to register with their information, including ‘company’s organization code, company’s name, type of the service, application area, server IP address and the ID proof of their legal representatives.
The official announcement reads it as follows;
The new regulations stipulate responsibility for the main body of the blockchain information service provider, including formulating platform conventions and management rules; implementing the real identity information authentication system; and not using blockchain information services to engage in activities prohibited by laws and administrative regulations or to produce, copy, and publish And disseminate the information content prohibited by laws and administrative regulations; the violators shall take measures to deal with them according to law, and the criminals shall also be investigated for criminal responsibility.
What do you think of China’s latest regulation on restricting blockchain? Share your thoughts.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com