Based on a recent report, the Cyberspace Administration of China (CAC) has announced the implementation of new crypto regulation (Blockchain Information Service Management Regulations) which gives the Chinese government the right to access private stored data and to check the identity of users as well to force blockchain media to remove “undesirable” content from their platform.
Blockchain Information Service Management Regulations
According to a press release announcing the new blockchain information service management regulation, February 15, has been marked as a day which the new crypto regulation will be officially enforced.
The Chinese authorities have made it clear that the new regulation will “promote the healthy development of blockchain technology and related services, and it will also “safeguard national security and social public interests, [and] protect the legitimate rights and interests of citizens.”
This is not the Chinese government’s first attempt at taking away the freedom that comes with the use of a decentralised network. In 2017, China outlawed initial coin offerings and cryptocurrency exchanges were banned for conducting their operations within the country.
China Love Blockchain Technology But Hates Cryptocurrencies
However, China has shown a great affinity for distributed ledger technology, and it has adopted it in some parts of its economy. The government has in recent time invested in the adoption of blockchain technology for some of its industry such as oil, shipping, and agriculture industries.
This has not stopped the government of the country from placing a blanket ban on all crypto related activities within the country.
Excerpt new regulation reads:
“blockchain information service provider shall implement the responsibility for information content security management, and establish and improve management systems such as user registration, information review, emergency response, and security protection… If the user does not perform real identity authentication, the blockchain information service provider shall not provide related services.”