The wave of regulation has slowly crept into China were cryptocurrencies are currently banned while its underlying technology, blockchain is painted as a game changer.
According to a Reuters report, today Jan 10, the Cyberspace Administration of China (CAC) has set rules that will govern blockchain startups in the country and expect the new laws to come into force as soon as next month
New directives issued by the China internet regulators require blockchain startups to “implement real-name registration for users via a national ID or telephone number, censor content and store user data.”
Implementing these guidelines will give the authorities access to user data on the platforms, thus mitigating risks of forged identity or anonymous transaction.
The agency reportedly believes that implementing these rules will help the Chinese blockchain industry to witness a “healthy and orderly development.” To this end, startups that fail to comply with the news when they come into force in February will be penalized. The project would have to pay fines or face any other form of prosecution decided by the CAC.
China Still Tight-Lipped Over Crypto Ban Reversal
The latest report from China focuses extensively on blockchain startups in the country but fails to give any heads up on the use of cryptocurrencies which has been under a ban in China since 2017.
However, the fact that Chinese authorities have decided to allow blockchain startups to exist under regulations mean that all hope is not lost. Maybe now or later the Chinese crypto shores will be reopened.
Meanwhile, the cryptocurrency ban in the country did not prevent Binance Founder, Chapeng Zhao and 13 other industry experts from being listed among China’s richest in 2018. Some of these crypto personalities have moved abroad to establish their business instead of relying on China’s crippled ecosystem.