Looking to use blockchain anonymously in China? Well, you may want to consider moving.
Regulation Asia reports that China’s internet censorship agency, the Cyberspace Administration of China (CAC), has published its final rules on regulating blockchain-based information and technical services and that they are slated to take effect on February 15.
The rules state that any website or mobile app that is subject to the regulations must register their names, domains, server addresses, and industry fields with the regulator within 20 days of the rules’ implementation.
Startups meanwhile need to register with a dedicated service portal within 10 days of launch, and firms creating new products will have to go through a “safety assessment.” Also:
Companies will also be required conduct KYC procedures to verify user data based on national IDs and phone numbers, effectively removing the anonymity of blockchain. They will also be obliged to oversee content and enforce censorship rules imposed by the government, as well as maintain backups of user activity logs for six months.
On request, user data and activity logs must be provided to authorities, who will additionally be empowered to conduct periodic inspections of blockchain companies.
Failure to comply with the rules will result in service suspension, fines, and potentially, criminal investigation.
The rules are widely seen as a reaction to an incident last year were an individual published an open letter alleging sexual harassment at a top university. The letter was published on the ethereum blockchain, and reportedly attracted censors, but given that ethereum transactions are public and unchangeable, it remained free to read by anyone.
CAC, however, says that the new rules are meant to help “the industry’s healthy and orderly development.”
Photo: tenaciousme