So far, China’s attitude towards digital currencies was harsh, yet the country encouraged blockchain innovation. It seems like things are now changing. Recently China has posted some reports indicating a new regulation that requires users to register for blockchain services with their names and government IDs.
The cyberspace Administration of China posted some
The draft also states that blockchain services will have to store backups of user data. Whenever it is necessary, the data will be provided to law enforcement agencies for inspection. The regulatory project states that when a user breaks a law using a blockchain-based service, the company should warn the user and strictly suspend, or shut down their accounts.
CAC’s document is forcing to remove internet-based anonymity, censoring controversial views and subjecting blockchain providers and users to 24/7 monitoring. According to CAC’s
While Article 7 states that sectors such as news, publishing, education, and healthcare, to name a few. When these areas chose to use blockchain tech, they’ll be “subject to the examination and approval of the relevant competent authorities in accordance with laws.” That means they’ll undergo 24/7 monitoring.
Article 9 bans the use of services to engage in activities that “disrupt the social order.” .Article 10 forces authenticating the real-world identity of each user or else the company can lose its ability to operate. Article 13 reports blockchain firms to “eliminate illegal information in time to prevent dissemination” which is a censorship clause. And Article 14 states, the “provider shall record the content and log information of users”.
Article 15 states that blockchain firms must “consciously accept social supervision” which basically examines them for constant monitoring. When they introduce new applications, functions or services, firms must report these to the relevant Internet Information Office, according to Article 16.
Other articles detail the fines and penalties for violating these rules, including termination of services. Article 22 states that these rules will be applied retroactively to cover existing operators. Article 1