China creates new rules for blockchain

new-blochain chian 2019

A new framework that regulates the use of blockchain in China is under development, among its main rules is that they must show the identification of users who are in the transaction platforms with cryptocurrencies.
On the other hand, it is established that the blockchain platforms that commercialize or carry out some type of transaction of cryptocoins in China, are in the obligation of censoring content, allowing the authorities to access the stored data and as well as verifying the identity of the users, according to the Government of that country.

According to information from the China Cyberspace Administration (CAC), the regulations will be effective as of February 2019, and they consider that “they will promote the healthy and orderly development of the industry”.

The energy factor, which is one of the weaknesses presented by the cryptocurrencies, also plays a fundamental role in the measures taken by the Asian giant, establishing energetic measures against the transactions in crypto currencies at the beginning of 2017, by means of a ban of the Central Bank of China to limit the Initial Currency Offers (ICO), the transactions in the territory, as well as exchanges with yuan.

The blockchain being a decentralized entity creates the possibility of direct transactions, without any intermediary, such as a bank, to obtain a good or service. Allowing frauds to be carried out by the Chinese government due to the lack of accreditation by the authorities, since companies can obtain financing through the use of cryptocurrency, also appearing for money laundering, because they are not subject to any regulation, which led to a series of measures for the exchange of digital currencies.

The blockchain platforms must create a register with real data of users

From its implementation the blockchain platforms must create a register with real data of users, supported with a national identification or telephone number, which must be stored and available for access by the Chinese government, which in case of breaching the rules is in the power to establish sanctions and conduct investigations as the case may be.

Leave a Reply

Your email address will not be published. Required fields are marked *