China’s CAC Will Enforce Regulation For Blockchain Businesses In February 2019

The internet regulator of China named the Cyberspace Administration of China (CAC) is in the latest crypto news for outlining a final draft of regulations that concern companies operating in the field of cryptocurrencies and blockchain. As the rules by the regulator outline:

“The Regulations on the Management of Blockchain Information Services has been reviewed and approved by the Office of the Internet Information Office of the State Council and is hereby promulgated and will be implemented as of February 15, 2019.”

Coming into effect from February this year, the rules will provide a set of guidelines which all businesses are required to follow. As the final draft outlines, the State Internet Information Office will be responsible for blockchain regulation at a national level, aside from the state or province-specific authorities overseeing the regulations in the respective states.

In the past, China has cracked down ICOs by banning them (2017) along with banning domestic cryptocurrency exchanges. However, this new move shows that the country is ready to back all the businesses and companies that develop new products. The only limitation is that they must undergo “safety assessment in accordance with relevant regulations”.

“Blockchain information service providers and users shall not use blockchain information services to engage in activities prohibited by laws and administrative regulations that endanger national security, disrupt social order, and infringe on the legitimate rights and interests of others,” the document states.

Overall, the regulations look stringent and we will see how they will affect companies within China. Given the crackdown in 2017, they are not a surprise but may also have a positive impact on the neighbouring India which is set to announce cryptocurrency regulations soon.