Chinese Internet regulator To Censor Blockchain Firms
China’s internet censorship agency has approved few regulations for blockchain companies in the country. The new regulations will take effect from Feb 15, 2019.
On Thursday the Cyberspace Administration of China (CAC) published its new regulations for managing blockchain information services. The announcement defines blockchain companies as “entities or nodes” which offer information services to the public using blockchain technology via desktop sites or mobile apps.
The document includes 23 articles listed which require the blockchain companies to register with the CAC within ten working days of starting to offer services to the public. The regulator also mandates that blockchain startups must register their names, service types, industry fields, and server addresses. The new regulation also bans startups from using blockchain technology to “produce, duplicate, publish, and disseminate” information or content that is prohibited by Chinese laws.
If blockchain companies do not follow the rules, the CAC said it would first issue a warning. If the company failed to act with the specified timeline, the agency would bring a fine ranging from 5,000 yuan ($737) to 30,000 yuan ($4,422), depending upon the offense.
In April 2018 China’s industry experts demanded better blockchain regulations. Li Lihui, CEO of cloud network provider Xunlei said:
“While blockchain’s technological development has seen major progress in China over last year with blockchain platforms launched by internet giants such as Baidu and Tencent, our regulatory initiative is substantially lagging behind.”