Chinese Officials Release New Regulations on the Management of Blockchain Technology
According to Chinese media reports, last year netizens in China used Blockchain technology to record an ‘open rape letter from a North university student’ as evidence (which had occurred 20 years ago).
Thus, to preserve the national security and public interest, on Jan 10, 2019, Chinese officials have released new regulations on the management of blockchain technology, which will come into effect from February 15, 2019.
A note from the official announcement stated that the Regulations on the Management of Blockchain Information Services has been reviewed and approved by the Office of the Internet Information Office of the State Council and is now broadcast and will be implemented as of February 15, 2019.
Since any record or transactions entered into a blockchain cannot be tampered with, or modified officials reviewed that people in China are using blockchain to spread illegal information and exploiting the public interest. With this in mind, China’s National Internet Information is stepping up with new frameworks for blockchain use within the country. Accordingly, the new regulations will be enforced as of Feb 15, and fines or jail time will punish any person violating the rules. These regulations impose responsibilities on the ‘main body’ that help operate blockchain technology or the platform offering blockchain services.
To launch a new service, one must register with the ‘the Cyberspace Administration within ten days’. In case of changing the service, the administration has to be notified within five days. Finally, if a service provider plans to stop a blockchain service, they need to report it to the authorities within 30 days before the end of such service.
Note: The violation of any rules would result in blockchain operators paying at least 30,000 yuan ($4450) or being held responsible for the crime (as per the law).
Chinese regulators have also been inspecting ‘crypto-related matters,’ forming effective frameworks for a long time. The draft of the latest blockchain management release came into light in October 2018. However, the version released on Jan. 10 seems to be the final report. Correspondingly, the blockchain service providers of China have to register with their information, including company’s organization code, company’s name, the type of service, application area, server IP address, and ID proof of their legal representatives.
The official announcement states that the new regulations stipulate responsibility for the main body of the blockchain information service provider, including formulating platform conventions and management rules; implementing the real identity information authentication system; and not using blockchain information services to engage in activities prohibited by law and administrative regulations or to produce, copy, publish, and circulate the information content forbidden by law and administrative rules; violators will be dealt with according to law, and criminals shall be investigated for criminal responsibility.
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