Chinese Agency Publishes First Draft Policies For Blockchain Sector
In a twist, the agency now wants the public to help in drafting the relevant laws for the sector.
China Makes First Step Towards Regulating Blockchain Sector
Chinese leading internet regulator, CAC has unveiled a scaffolding for policies meant to provide oversight on upcoming cryptocurrency projects within the country. The agency which is part of the Chinese government made the policies public on Friday. At the moment, the agency is awaiting feedback from the public regarding “The Regulation for Managing Blockchain Information Services” document.
If the policies are adopted, they will be the initial set dedicated to the blockchain sector within China. According to CAC, the rules, blockchain information service providers refer to firms that provide blockchain information to locals. Such entities can either be individuals or institutions that deploy blockchain systems through different platforms.
The draft has 23 articles. As the first part, entities are required to submit their applications to the agency in a span of 10 days when it goes public. Startups with interest in blockchain are required to hand over their names, the nature of service they are offering and details about their servers. The collected details will then be published.
In addition, the agency will be carrying out audits after every year to promote compliance. One thing missing from the draft is the type of blockchain firms that are classified under its regulations. According to local Chinee analysts, the laws might impact supernodes on some blockchain systems.
According to Jiang Zhuor from BTC.TOP mining, considering a single supernode on EOS systems is run by an institution or individual, then they must adhere to all of the policies in the draft.
For blockchain service providers in regions with high regulations in China, they will also have to meet the policy requirements. Such entities will include media outlets and publishing firms.
All service providers listed under the draft document will be barred from using blockchain systems to publish and distribute content outlawed by China. Earlier, many Chinese citizens were exploring blockchain as a means of beating the strict internet censorships within the country.
Chinese nationals have been given until November 2nd to share their views regarding the new regulations. After considering all views the draft will then move to the next phase towards.