China to enforce regulations for blockchain firms

regulations for blockchain firms

Last week, the Cyberspace Administration of China (CAC) approved a set of new regulations for blockchain firms operating in the country, according to a recent release published on the regulator’s website.

The new guidelines will come into force on Feb 15th, 2019, the statement added.

According to the CAC, the new policies, are designed to safeguard national security and public interest.

Regulations for blockchain firms

As soon as the new provision comes into effect, service providers will be forced to register their names, domains, and server addresses within 20 days.

The new guidelines mandate that it will ban providers from using its blockchain technology if they violate produce, duplicate, publish or disseminates information or content that is prohibited by Chinese law.

If service providers fail to comply with these regulations, the CAC said it might face fines from 20,000 to 30,000 yuan($2,900/£2,296 and $4,400/£3,345, respectively). If the regulator deems it a serious offence, the firm could face a criminal investigation.

China first issued the draft guidelines in mid-October 2018, which also contained recommendations that seek to eliminate anonymity in blockchain networks.

China is currently piloting blockchain technology in three major regions – Beijing, Shanghai, and Guangzhou. According to a December report by the local finance publication outfit, Securities Daily, there are 11 blockchain-based policy projects in those areas.

A ban on crypto trading

Previously, authorities imposed a ban on crypto trading in Sept. 2017, which was finalised in Feb 2018 when the government added international crypto exchanges and coin offerings (ICO) to its Great Firewall.

The decision was approved by the People Bank of China, the country’s central bank, and other regulators.

 

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