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Briefing: Chinese authorities to enforce new blockchain regulations in February
China imposes blockchain rules to enable ‘orderly development’ – Reuters
What happened: The Cyberspace Administration of China (CAC) has released the finalized regulations concerning blockchain information service providers, which will come into effect on February 15. Under the new regulations, which consist of 23 articles, blockchain companies will be required to implement real-name registration, maintain correspondence with authorities, and provide relevant information as requested.
Why it’s important: Chinese authorities first proposed the draft regulations last October in a bid to increase control over the burgeoning blockchain industry. Though the government claims to be a blockchain proponent, it has cracked down on cryptocurrencies, initial coin offerings (ICOs), and exchange services since 2017. The move against cryptocurrencies has driven away many homegrown exchanges and wallet services. While the new regulations will provide the industry with clearer guidance, some experts worry that it would stifle the innovation in the nascent blockchain industry by driving away startups and entrepreneurs.