The time has come when the blockchain industry in China might face heavy scrutiny, due to the new laws introduces by the authority. Moreover, the regulatory body declares on their official website, stating about the new regulations to come in action by February.
From the coming month onward this regulation will try to advance a healthy and orderly development of the industry. According to the document, every blockchain firms, online websites along with mobile apps offering technical support or information to the public via blockchain technology will be subject to the “anti-anonymity regulations”.
Chinese Anti-Anonymity Regulations
These regulations will probably come into action on February 15, the next month. According to this rule, every blockchain operating businesses need to register their domains, names, and server address with the CAC that too within 20 days.
The new blockchain companies | platforms will have to implement severe KYC measures. Moreover, the user is supposed to follow real name registration through a telephone number or national ID. Additionally, the blockchain startups should let regulators access any data storage of users or the respective company.
The document says that blockchain firms will have to compel overseeing all content and censor details to reveal its compliance under Chinese law. If it fails to comply with the particular laws, they might have to accept the fine from ¥20,000 – ¥30,000 which seems approx. US$2,900 – US$4,400. If in case, occurs in many extreme offenses, they might end up facing prosecution direct from the CAC.
This action of implementing “anti-anonymity regulations” will give good results; also it was in work for quite a time. In October, the CAC also issues a draft guideline specifying the removal of anonymity within the blockchain.
The Theory About China On Blockchain And Cryptocurrency
This new introduced anti-anonymity regulations by China is not a surprise. Moreover, the communist country already is working on a very tight policy regarding data privacy and censoring content. The Chinese government plans to hold entire control, developing and advancing their economy in an orderly fashion.
As cryptocurrency along with blockchain technology holds a lot of potentials, offering user freedom and privacy, so, the government in China realizes the strict need for implementing regulations. This is not the first time regulatory bodies are planning such stuff.