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China Pushes Through Blockchain Regulations

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The Cyberspace Administration of China (CAC) sets rules that allow Chinese blockchain platforms to censor content, authorities to access stored data, and enforcers to check the identity of users.

According to the CAC, the regulations will advance the industry’s healthy and orderly development. The blockchain rule will take effect next month in February 2019.

China has been cracking down on cryptocurrencies since 2017. The Chinese government banned initial coin offerings and prohibited local cryptocurrency exchanges.

Companies operating blockchain platforms will need to implement real-name user registration with national ID as proof. The platforms will also censor content and store user data.

The CAC adds that violators will receive fines or prosecution. Despite its crackdown, Beijing urges people to research on blockchain technology, which allows users to record bitcoin transactions. Blockchain technology is also useful in areas like crude oil trading and supply chain tracking.