China To Introduce New Set Of Rules Regarding Crypto

According to a press release by the Cyberspace Administration of China (CAC), a variety of new regulations with regards to blockchain companies will be enforced on February 15. The regulator was of the opinion that these new set of rules will “advance the industry’s healthy and orderly development.” The CAC release also outlined all of the “Blockchain Information Service Management Regulations.”

As per the guidelines, 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 also store up to date backups of all user information and activity for at least six months. 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.

The new rules, which will be enforced say that 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, there might arise scenarios where 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 do not follow these 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.”

Authorities in Beijing have said that in today’s world of increased crypto usage, they encourage blockchain technology research. But at the same time, the country has also engaged in a widespread crypto crackdown since 2017 with bans against ICOs and domestic exchange operations.