New Blockchain Rules For The Chinese?

Looks like China wants to reorganize their approach towards Blockchain technology and its usage in the country.

Reuters reported that China is implementing new rules in the country for the ‘orderly development’ of blockchain. While the country has maintained a strict anti-crypto stance, it has however been more accepting of blockchain technology.

However, looks like the government wishes to tighten their control over the  various blockchain platforms across the country. According to the Cyberspace Administration of China (CAC), the new regulations direct Chinese blockchain platforms to censor the content that they display, allow the government officials access to stored data and also verify and store the identity of users.

The CAC detailed that the regulations will be put into place from the coming month. They sincerely believe that these new regulations will

“advance the industry’s healthy and orderly development.”

Considering the hard lined approach that China has towards cryptocurrencies, it was a matter of time before they decided to tighten their control over the blockchain industry as well. The country has been known for censorship and stifling individual freedom of the citizens to a great extent.

Back in 2017, the government has banned initial coin offerings. Additionally, they also banned local cryptocurrency exchanges from conducting any domestic business. Similarly, we can see greater regulations for the blockchain industry now.

Users will now be expected to provide their real names for registration and that shall be verified via their national ID or telephone number. User data will be stored and shared with the governement if they ask for it. These appear to be indicators of a crackdown on the freedom of the blockchain industry.

Those who do not comply with these rles, will be subject to fines or prosecution. These rules were drafted by the CAC back in October 2018

The country still maintains that they hope to see fuuture development in innovation and technology, faciliatted by blockchain. However, there are concerns being raised regarding this crackdown of the government on the blockchain sector.