The office tasked with censoring and overseeing the internet made one of their first announcements of 2019 on Thursday, releasing “blockchain information service regulations” on their website.
The regulations were an important indication of where China’s highest internet administration bureau stood on the development of blockchain. Throughout the release, they noted the opportunities and benefits blockchain can bring to the country and society, while also highlighting the risks.
The new regulations require blockchain service providers to register their service with the Cyberspace Administration. This should be a familiar process for anyone in the industry, because it’s a necessary step to creating a website. Similarly, it requires blockchain service providers obtain the identities of those using the service (KYC), and ensure that the services aren’t in violation of the law. Lastly, it establishes the Cyberspace Administration as an overseeing body in the industry, capable of handing down punishment to service providers in violation of these regulations.
Analysis
While all this could be considered usual government rhetoric, it does instill optimism that bans and over-regulation are a thing of the past. By establishing this core regulatory framework, blockchain will have a legal method to pursue development within the country. Additionally, the positive language mentioning it as an emerging technology that could “benefit the development of the country” is especially noteworthy, as Xi Jinping has put the emphasis on continued growth, development, and economic improvements in his most recent speech 10 days ago.
For my thoughts on 2018 regulations in China, check out this review.
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