Blockchain-Based Media Projects in China to Follow New Rules

Cyberspace Administration, security regulator for the internet in China, has announced new rules for data service providers using blockchain technology. The new regulations are similar to those for projects designed based on social media or online forums, among many similar applications online, through a DLT system.


The agency is looking to have data service providers collect real names as well as official national ID numbers from their users through the initial registration process. Furthermore, it will be mandatory for the companies to store this information and provide the regulatory entity full access to it for any site checkups.

These project companies will also be obligated to censor any posts by their users according to national security standards. There is a full network that censors the internet for the Chinese state already carefully censoring social media and other types of media networks. Obligatory lists are produced from the scans with data that has to be deleted or changed.

There exists a considerable issue with the initial outline of the regulations because they do not acknowledge blockchain to be a technology in which data cannot be altered or deleted completely, and so they’re defying the state’s rules put forward about user information. Furthermore, these regulations have no structure for protecting DLT project rights, according to Xu Kai, a lawyer based in Beijing.

No More Anonymous Users

These regulations are being proposed by Cyberspace Administration following a scandal that happened last April, which started with an anonymous letter on the ETH network. In the letter, it was alleged that a cover-up of a sexual abuse incident happened more than twenty years ago at one of China’s major universities. The document was attached by that anonymous user to an ETH Tx that was made to their own account. So, everyone was able to read it, because blockchain is a public platform.

It is not yet clear when these regulations will go into effect, but stakeholders have a chance to comment on them during a public consultation period up until the 2nd of November.

This new package of regulations will have media projects based on DLT technology placed on the same level as many other applications for social media and online forums which are currently available, which all follow a law for cybersecurity that began enforcement at the behest Beijing last year.

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