China’s Internet Censorship Agency To Implement Regulation For Blockchain Firms Next Month

Blockchain, News, Regulation | January 13, 2019 By:

The Cyberspace Administration of China (CAC), the country’s Internet censorship agency, has introduced new regulations for domestic blockchain firms.

In an online post, the CAC said that the final draft of regulations for blockchain firms that are operating in the country was reviewed and approved by the Office of the State Council’s Department of Internet Information and will become law on February 15.

According to the CAC, the new rules were designed to contribute to the healthy development of the blockchain industry. Under the new rules, blockchain service providers, entities that offer information services to the public using blockchain technology, will be required to record and log user activity and maintain backups for at least six months. They will also be required to censor content deemed to pose a threat to national security.

Companies found to be in violation of the rules could be subject to fines, ranging from 5,000 yuan to 30,000 yuan, or criminal prosecution.