China Checks Blockchain Service Providers with Strict Regulations

167

In a recent Chinese report released pertaining to blockchain technology, the Chinese government addressed the country blockchain companies regarding the imposition of strict new regulations which include the need for contents to be filtered properly and also giving the power to the authorities to access any particular data and identify the users.

The Internet Information Office of the State Council has analyzed and approved the regulations which were passed recently on 10 January 2018. The new regulations passed will come into effect starting February 15, 2019, which will be enforced and strictly monitored by the Cyberspace Administration of China. The new regulations consisted of a total of 24 articles.

The State Internet Information Office has been assigned the responsibility to supervise and manage the blockchain information service providers in the country. The matter and provisions enclosed within the document consisting of regulations are to be followed within the territory of the People’s Republic of China only and applicable to the Companies that provide or involved in blockchain-based information services.

The regulations reveal that the Blockchain Information Service Providers should report to the Internet Information Office of the area concerned when the firm develops new products, new applications or new functions to the existing blockchain system for safety assessment.

The Blockchain Information Service Providers and its users should not involve in any as such activities which are against country law and actions, risky for the national security, shattering social peace & order, and forging of information content. The regulations also mention that the Blockchain Information Service Providers should register with the agency within 10 working days since the date of providing the service. Any change made in the provider’s platform website or service item should also be updated with the agency within 5 working days since the date of the change. The Blockchain Information Service Providers are also required to undergo and submit the cancelation formalities within 30 days if the provider has terminated its services.

After receiving all the documents and filings by the providers, the Internet Information Office will pass on the filing to the National Internet Information Office District. If the materials are found to be insufficient when announced to the public then the filing won’t be completed. The provider will receive notifications regarding the same and the reason behind the rejection would be entailed in the notified content.

If the Providers violates certain articles of the regulations mentioned in the report then the same provider would be given warnings by the Internet Information Office of the State regarding the corrections they need to make. If in any case this request to correct is being denied by the provider then they will be fined 5,000 yuan. The upper bound of the fine is 30,000 yuan.

Disclaimer

Blockchain Stocks has not been paid to mention any stock /company within this article nor do we own any stock in any company mentioned in this article. More information about our full disclosure can be found here – Full Disclaimer.