China Enforces New Blockchain Rules for ‘Orderly Development’

By Katelyn James | January 12, 2019
China Enforces New Blockchain Rules for 'Orderly Development'
China Enforces New Blockchain Rules for 'Orderly Development'

Come February 15, the Chinese Government will begin enforcing its latest rules which will require blockchain platforms to allow authorities to censor content.

On Thursday (Jan 10), The Cyberspace Administration of China (CAC) published a document entitled “Regulation for Managing Blockchain Information Services”, consisting of 23 articles meant to “advance the industry’s healthy and orderly development.”

In addition to censorship, the regulation will require blockchain service providers to register their businesses with the CAC within 10 wexchangeorking days. They must also register names, addresses – even national IDs. The identities of users must also be recorded. Any company found in violation of the new rules will face fines ranging from 5,000 yuan ($737) to 30,000 yuan ($4,422).

China’s stance that “Blockchain good, Bitcoin bad” has seen it clamp down hard on cryptocurrency. It also moved to shut blockchain-related news websites, and limit the Internet access of digital exchanges in 2018.

Blockmanity’s take on the matter that a blockchain which allows government censorship and collection of user data is effectively “just a database”.  

Still, 40% of Chinese companies express interest in investing in Bitcoin, as we have reported. Companies like Baidu, Tencent, or Alibaba are heavily invested in various blockchain startups all over the world.   

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