The Standing Committee of the 13th National People’s Congress in China has reportedly approved of a new bill to provide regulation for crypto in the country, which will be effective beginning next year.
Reported by the CCTV, the new law – officially passed on October 26 – will specifically aim to establish the standards for crypto-related applications and passwords control.
The regulation will introduce a new central cryptographic agency – tasked with providing guidance for cryptographic activities, and come up with proper policies for the crypto scene.
When publicly displayed back in May this year, the draft bill seems to have its concentration particularly on government centralized password control, and failed to talk about digital coins. However, cryptography – a primary factor supporting crypto coins like Bitcoin – was discussed in the bill.
“The key takeaway is — the developing of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means you need to follow the CCP standard for all ‘encrypted’ behaviours, which can be VERY broad, from mining to block propagation.”
This means the bill is establishing the foundation, paving a way for the official introduction of a China-based national cryptocurrency – though the specific release date is yet to be revealed, as confirmed by a member of the Chinese government in September.