China enforces blockchain rules to facilitate 'orderly development

China enforces blockchain rules to facilitate
Highlights

Under rules set out on Thursday by Beijing, Chinese blockchain platforms will have to censor content, allow authorities access to stored data and check the identity of users

Under rules set out on Thursday by Beijing, Chinese blockchain platforms will have to censor content, allow authorities access to stored data and check the identity of users.

The Cyberspace Administration of China (CAC) said that the regulations, which will come into force next month, will “advance the industry’s healthy and orderly development.”

China has cracked down on cryptocurrencies since 2017 when the government banned initial coin offerings and barred local cryptocurrency exchanges from operating domestically.

Now blockchain platforms will need to implement real-name registration for users via a national ID or telephone number, censor content and store user data.

Companies who will be found violating of the rules could be subject to fines or prosecution, the CAC, which issued draft rules in October, added in a statement.

In spite of its crackdown, Beijing says it encourages research into blockchain technology, which is best known for recording bitcoin transactions but is increasingly being used in areas such as crude oil trading or supply chain tracking.

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