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China Introduces Censorship Rules for Blockchain

January 11, 2019 15:49
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Just when one begins to think that China may be progressing, albeit slowly, in technology adoption, the country goes ahead and takes two steps back.

The Internet Information Office, of the State Council, has approved The Regulations on the Management of Blockchain Information Services and will implement the new regulations from February 15, this year.

Introducing certain censorship laws, one of the regulations states, “Blockchain information service providers shall have the technical conditions appropriate to their services. For information content prohibited by laws and administrative regulations, they shall have immediate and emergency response capabilities for their release, recording, storage and dissemination. It should conform to the relevant national standards.”

The regulations do not spare the consumer either. The directives to the service provider very clearly states that the consumer has to submit their “real identity information based on the organization code, identity card number or mobile phone number for the blockchain information service users.” If the user does not provide their required information, the service provider- by law- is forbidden from providing the required services.

Another problematic rule reads, “The State Internet Information Office shall be responsible for the supervision and management of the national blockchain information service in accordance with its duties. The Internet Information Office of the province, autonomous region or municipality directly under the Central Government shall be responsible for the supervision and management of the blockchain information service within its administrative area in accordance with its duties.”

As earlier reported by Crypto-News India in August 2018, Hangzhou Court of the Internet was founded on August 18th as China’s first trial court focusing on internet cases. With the implementation of “hearing Internet cases online”, the court shall complete the whole process online, including indictment, accreditation, testification, court, referee, and execution, in a bid to save judicial resources and convenient the public in lawsuits.

While the implementation of blockchain technology is fantastic in itself, the whole idea of controlling blockchain-backed services, defeats the purpose of trustlessness and decentralization.

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