News Roundup — Blockchain Regulations and Legislation
What are some of the latest regulatory and legislative efforts focused on blockchain? We review the recent headlines here:
China’s internet censor proposes blockchain service provider regulations
The Cyberspace Administration of China, the nation’s internet regulator and censor has announced a public consultation on proposed regulations for blockchain information services. Among other things, the draft regulations specify that blockchain information service providers and users shall not use those services to “disrupt social order” or make, copy, publish and disseminate prohibited content, and that service providers must authenticate users via an identity card or mobile number before providing any services. The deadline for public comments on the proposed regulations is 2 November.
Hong Kong Stock Exchange calls for regulatory sandboxes
A new research report published by the Hong Kong Stock Exchange explores regulatory frameworks for fintech applications, in particular those using blockchain and AI in the securities industry. Prepared by the Chief China Economist’s Office and Innovation Lab, the report recommends testing fintech application pilots in a regulatory sandbox environment. “To a certain extent, the use of fintech may not help reduce the inherent risks in the financial system but rather, may magnify or expose new forms of financial risk,” the report noted. “Therefore, regulators should consider how to enable the application of
fintech innovations in the securities industry under an appropriate regulatory framework.”
EU Blockchain Forum member calls for “radical rethink of regulation”
Writing in the University of Oxford’s Faculty of Law blog, Anastasios A Antoniou — a member of the EU Blockchain Observatory & Forum, Policy and Framework Working Group — warned that “[b]lockchain and law are on a silent collision course that must be addressed” and called for “a radical rethink of regulation”. Noting that blockchain is a technology which the law is in many ways not ready to address (and naming the EU General Data Protection Regulation as an example), Antoniou added: “If distributed ledger technology seeks to attain its full potential, it should not attempt to evade or circumvent law but rather find its place within a well-structured, relevant and versatile regulatory framework that will allow it to be exploited to its profound potential. Code should rather embrace the law and engage in an interaction which advances them both.”
Russian State Duma eyes digital financial assets for businesses
The Russian-language business daily Vedomosti has reported that the Russian State Duma, the lower house of the nation’s Federal Assembly, had prepared a draft law to allow non-public joint-stock and limited liability companies to raise capital “with the help of digital financial assets”. The publication cited Anatoly Aksakov, chairman of the Duma’s Committee on the Financial Market, as saying that Russian businesses and individual entrepreneurs needed a legal mechanism for raising money via such digital assets.
