Blockchain Latest Update: China Enforces Anti-Anonymity Regulations for its Blockchain-Based Startups


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According to reports, the CAC (Cyberspace Administration) of
China has implemented new regulations over Blockchain-based firms currently operating
in the country. This is a move by the
Chinese authorities to further strengthen its
oversight over the sector. The announcement was reportedly published on
the CAC’s website this Thursday, January 10.

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Authorities Will Have Access to Stored Data and Launch
Registration Processes Under the New Regulations

As per the stipulations on the CAC regulations, the
guidelines, which are going to be in effect from February 15 2019, were
designed to contribute to a healthy sector and encourage the development of the
Blockchain industry.

The document indicating the terms or a new set of regulations
describes the Blockchain firms operating in the country as subject to the regulations as sites or mobile applications
that provide data and technical support to members of the public using the
Blockchain-related technologies. According to the report, as soon as the new
regulations come into effect, the company’s will be under obligation to
register their names, server addresses and domains at the CAC in a 20-day period.

The new guidelines also require Blockchain startups in China
to give authorities access to their stored data
and introduce a registration protocol that would require the ID or mobile number of its users. Additionally, these
companies will be obligated to oversee content and even sensor any data that is prohibited under the current Chinese
legislation.

October Draft, Motivation Behind New Blockchain
Regulations

If a Blockchain-based startup or entity operating in the country fails to comply with the new
regulations, said firm might face fines
running to the tune of 20,000 to 30,000 Yuan (which is equivalent to $2,900 to
$4,400, respectively). In the case of serial
offences, under the new regulation, the
company may face criminal indictment.

China first released draft guidelines in October for
blockchain companies, which also contained recommendations that sought to
eliminate anonymity in the blockchain.

At the time, Asian newspaper The South China Morning Post
wrote about an anonymous open letter that alleged sexual harassment at a top
Chinese university that was published on
the Ethereum (ETH) blockchain in April. The media outlet believes the
publication of the letter could be a motivation behind the new regulations.

China Piloting Blockchain-Based Solutions in the Regions

China is reportedly currently piloting its Blockchain
legislation in just three major regions across the country including Beijing,
Shanghai and Guangzhou. We can recall from a December report by the local
finance publication outfit, Securities Daily, that they are 11 Blockchain-based
policy projects in the areas above. The
new legislation will ease things and streamline the country’s Blockchain
ambitions.

In the meantime, the Asian country has reportedly upheld a
de facto ban against the domestic trading of digital currency first implemented
in 2017. This regulation was completed in February last year when the
government decided to include international crypto exchanges and ICO (initial
coin offering) sites to its Great Firewall. The People’s Bank of China approved
this decision by the government. Apart from China’s central bank, financial
regulators within the Asian territory also welcomed the legislation



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