The Chinese Internet censorship agency has approved a set of rules for blockchain service providers in the country that will come into effect in mid-February.
The Chinese Cyberspace Administration (CAC) released its new "Blockchain Information Services Management Regulation" on Thursday, defining blockchain information service providers as "entities or nodes" offering public services information using blockchain technology via mobile sites or applications. The rules become official on February 15, according to the statement.
Of the 23 items listed in the document, one requires blockchain service providers to register with the CAC within 10 business days of the start of the public service offering.
The agency also requires startups in the blockchain to register their names, service types, domains, and server addresses. In addition, it prohibits start-ups from using blockchain technology to "produce, duplicate, publish and disseminate" information or content prohibited by Chinese law.
If the blockchain startups do not comply with the rules, the ACC announced that it would first issue a warning, while failure to act within the time limits would result in a fine of 5,000 yuan ( $ 737) to 30,000 yuan ($ 4,422), depending on the offense. .
ACC released its first draft regulation last October. At that time, one of the articles also recommended to block-chain start-ups operating in areas such as news reporting, publishing, education and publishing. Pharmaceutical industry also obtain licenses from competent authorities before being registered with the ACC. The final rules have totally abandoned this article.
Previously, blockchain technology was used to circumvent China's strict censorship on the Internet – often dubbed "the big firewall". For example, as part of the #Metoo movement and the recent pharmaceutical scandal in the country, people have posted information on the Ethereum blockchain in order to avoid censorship.
Image of China flags via Shutterstock