China will begin to regulate blockchain companies in February

This was stated by the Cyberspace Administration of China in a document published yesterday. The Office also disclosed the details of the bill, designed to determine the regulation of the blockchain industry. Guidelines for existing blockchain companies will enter into force on February 15.

The Office recognizes that distributed registry technology has important and useful properties. For example, protection against falsification of data. Such decisions can have a positive impact on national welfare and improve the life of society. At the same time, the agency notes that a lot of risks are also associated with the confidentiality of data exchange in the blockchain.

To solve this problem, the regulator proposes to oblige blockchain companies to provide access to data to the authorities and to perform user verification using identification numbers.

In accordance with the new rules, companies and private individuals are classified as information service providers using the blockchain, using technology to disseminate data through websites or mobile applications. From now on, such persons will be required to register their names, types of services provided, scope of activity and addresses of servers. This information will be publicly available, and the regulator will check it annually.

If a company violates the requirements of the new legislation, it may be fined from 5,000 to 500,000 yuan (approximately $ 740 to $ 74,000). At the same time, for companies that commit violations related to anonymity, the minimum fine is 50,000 yuan. Malicious violators are to be criminally prosecuted.