The Cyberspace Administration of China (CAC) said a variety of new regulations concerning blockchain companies will start to be enforced on February 15, according to a release. The regulator said the new rules will “advance the industry’s healthy and orderly development.” The CAC release also outlined all of the “Blockchain Information Service Management Regulations.”
Under the stipulations, blockchain platforms will be required to implement real-name user registration, censor content, and give authorities access to stored data, according to Reuters. Companies must keep backups of all user information and activity for at least six months, according to the rules. The State Internet Information Office will be responsible for national level blockchain regulations, while more local authorities will be responsible for enforcement in different states.
New Rules Require Companies To Register
Blockchain service providers are mandated to properly register with the National Internet Information Office’s blockchain filing system “within ten working days from the date of providing the service.” According to the CAC, pertinent companies will be required to give notification within five working days if they change the “service item or platform website.”
Authorities also have the power to carry out inspections and other supervisory activities, and companies must comply and correspond with authorities when applicable. Entities who break the rules face potential suspension until the problem is fixed. Fines of 5,000-30,000 yuan ($739-4,400), and potential criminal prosecution could be a factor for more serious violations.
Article 10 of the document warns and prohibits blockchain service providers from engaging in activities that break the law and “endanger national security, disrupt social order, and infringe on the legitimate rights and interests of others.”
China’s Crypto Crackdown?
Authorities in Beijing have said they encourage blockchain technology research, but the country has engaged in a widespread crypto crackdown since 2017 with bans against ICOs and domestic exchange operations.
Some speculate China’s harsher line could open the door for other nations, like Japan and the Philippines, to become Asia’s ‘Crypto Valley.’ Reporting late last year from the New Indian Express said holding crypto in India could become legal if an interdisciplinary committee in favor of legalization gets their way.