China’s internet censorship medium has approved a set of regulations for blockchain service providers in the country that will take effect in mid-February.
The Cyberspace Supervision of China (CAC) published its new “Regulation for Managing Blockchain Information Services” on Thursday, defining blockchain information service providers as “real natures or nodes” that offer information services to the public using blockchain technology via desktop sites or mobile apps. The oversights become official on February 15, according to the release.
Among the 23 articles listed in the document, one requires blockchain post providers to register with the CAC within 10 working days of starting to offer services to the public.
The agency also mandates that blockchain startups obligated to register their names, service types, industry fields and server addresses. Further, it bans startups from employing blockchain technology to “produce, duplicate, publish, and disseminate” information or content that is prohibited by Chinese laws.
If blockchain startups fold up to comply with the rules, the CAC said it would first issue a warning, while failure to act within the specified timeline resolve bring a fine ranging from 5,000 yuan ($737) to 30,000 yuan ($4,422), depending upon the offense.
The CAC before all published draft rules in October of last year. At that time, one of the articles also recommended that blockchain startups go in fields such as news reporting, publishing, education and the pharmaceutical industry must also obtain licenses from significant authorities prior to registration with the CAC. The final rules have dropped this article altogether.
Previously, blockchain technology has been utilized to avoid China’s strict internet censorship – often dubbed “The Great Firewall.” For example, as part of the #Metoo movement and a late pharmaceutical scandal in the country, individuals posted information on the ethereum blockchain to avoid censorship.
China flags typical example via Shutterstock