As an agency in charge of censorship on the Internet, the Cyberspace Administration of China (CAC) has revealed its plans for regulation of blockchain-related projects in the country.
Each and Every One
CAC published a draft policy on Friday and is expecting public feedback before the regulations enacted. If they take effect, the rules will apply to China-based startups defined as “entities or nodes” providing blockchain service to the public. These include both institutions and individuals that use the technology via desktop or mobile apps.
One of the articles included in the draft claims that blockchain service providers must register with CAC within 10 days of beginning to offer the service. Furthermore, startups are expected to submit their names, service types, industry fields, and server addresses.
Blockchain service providers undertake to ensure the know-your-customer (KYC) procedure and collect users’ personal data. Moreover, startups operating in highly regulated fields such as media, education and pharmaceutical industry must obtain a specific license before registering with the agency.
What Will Be the Impact?
Jiang Zhuo’er, BTC.TOP mining pool founder, expressed his view on the draft using the example of the EOS network. According to him and other industry experts, the proposed regulation will impact the “supernodes” of some blockchain networks.
“...Each of the 21 supernodes of the EOS network is operated by a company or an individual. As such, they must be fully compliant [with this regulation]," – Zhuo’er wrote on weibo.com.
Before the new rules take effect, the public has time to leave its feedback until November 2.