China explains the blockchain rules to ‘orderly development’

SHANGHAI (Reuters) – the Chinese blockchain platforms will have to censor content, can the authorities access to the stored data, and verifying the identity of users under the rules on Thursday by Beijing.

The Cyberspace Administration of China (CAC) said that the regulations, which take effect next month, will “advance the industry healthy and orderly development.”

China has cracked down on cryptocurrencies since 2017 when the government banned original currency supply, and excluded local cryptocurrency the exchange of operational own country.

Now blockchain platforms will be required for the implementation of real-name registration for users through a national ID or phone number, censor content and store user information.

Companies found in violation of the rules may be subject to a fine or prosecution, the CAC, issued draft rules in October, added in a statement.

Despite the repression, Beijing says it encourages research into blockchain technology, which is best known for the recording of bitcoin transactions, but is increasingly used in areas such as trading in crude oil, or supply chain tracking.

Reporting by Josh Horwitz; Editing by Brenda Goh and Alexander Smith

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