The Chinese Government has imposed a new regulation on blockchain companies who provide the blockchain information service to the public. On 10th January 2018, the Cyberspace Administration of China (CAC) who is the central internet regulator, censor, and control agency for the People’s Republic of China on its new release which is named as “Blockchain Information Service Management Regulations” stated that the companies need to register with CAC.
The new regulation will be promulgated from 15th February 2019. The main reason behind the regulation is to protect the legitimate rights and interests of citizens, legal persons, and other organizations. It will also promote the healthy development of blockchain technology and related services, and safeguard national security and social public interests.
The Internet Information Office of the State will supervise and manage the national blockchain information service. Whereas the supervision and management of the blockchain information service will be done by the Internet Information Office of an autonomous region or municipality and the province under the Central Government.
Blockchain companies should report to the Internet Information Office of the State and the Internet Information Office of an autonomous region or municipality and the province under the Central Government about their new applications or new functions and new products in order to assess their safety. Besides, the companies have to work as per the provisions of the “Network Security Law of the People’s Republic of China”. A user has to perform a real identity authentication. If the user doesn’t perform the authentication, then the companies will not allow the user to access the related services.
The companies and users should not use those services which are banned by laws and administrative regulations because the services can disrupt social order, infringe on the legitimate rights and interests of others, and endanger national security, as reported on the official website of the Cyberspace Administration of China (CAC).
The government of Switzerland aimed to implement a regulatory framework for Blockchain companies. It told regulators of the country to amend existing laws in order to accommodate blockchain companies. The Swiss Federal Council said that the main focus of the amendments should be on improving the position of the country globally. It is stated that although the framework is ready to work with those business models which are based on Distributed Ledger Technology (DLT) as well as Blockchain, there are more adjustments that need to be done, according to a report by Coinjournal.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]