China Seeks Public Feedback on Draft DLT Regulations
HomeCryptocurrency NewsCryptocurrencies Latest News

China Seeks Public Feedback on Draft DLT Regulations

The Cyberspace Administration of China (CAC) has announced that it will accept public feedback through Nov. 2 on draft rules it recently pu...

Ripple CEO: Bitcoin Controlled by Chinese, Absurd to Think it Could be Primary World Currency
Bitcoin in Brief Wednesday: Zug Tests Blockchain to Decide on Fireworks and Digital IDs
Internet Company Asks Israeli Authorities Permission to Pay Salaries in Bitcoin

The Cyberspace Administration of China (CAC) has announced that it will accept public feedback through Nov. 2 on draft rules it recently published to regulate blockchain projects, but the proposed legislation has already drawn a mixed response from distributed ledger technology (DLT) analysts.

Also Read: Bitstamp Confirms Acquisition by South Korean Company

Strict Rules for DLT Users

China Seeks Public Feedback on Draft DLT RegulationsThe CAC said it has designed the proposed rules to uphold national security and protect the interests of companies and the general public, while facilitating the development of the blockchain industry. The guidelines require real-name registration for all DLT users and obligate all blockchain companies in China to store user data for government inspection for periods of up to six months.

“Blockchain-based service providers should work with the authorities to carry out supervision and inspection, and provide the necessary data and technical assistance,” the CAC said in the document.

The regulator also wants blockchain-based service providers to register within 10 days of starting their businesses. Such companies will be expected to record the names and server addresses of their customers, and will face the possibility of suspension if they provide incorrect information to the authorities. Those that fail to rectify issues related to incorrect customer information within specified time frames may also have their licenses revoked.

In addition to the strict monitoring and reporting requirements it is proposing, the CAC said that it expects the DLT industry to develop its own standards and best practices. It has called for the “blockchain industry to strengthen self-regulation and set up industry standards, educate service providers, and promote the industry credit rating system.”

Mixed Reactions to Proposed Guidelines

China Seeks Public Feedback on Draft DLT RegulationsThe proposed regulations have received mixed reactions from analysts and representatives of China’s DLT sector. Yang Dong, vice president of Renmin University of China Law School, warned that the legislation could stifle innovation. “This will only bring undesirable obstacles and difficulties to entities’ innovation activities,” he said. “Blockchain technology should be neutral. The necessity of the draft policy should be doubted.”

Tamar Menteshashvili, a doctorate student and founder of the Shanghai Jiao Tong University Blockchain Hub, said that the proposed regulations are at odds with the government’s support for the blockchain industry. She also warned that the proposed rules could place additional financial burdens on blockchain startups, due to new procedures they might need to introduce to meet legal requirements.

“While the Chinese government has been very supportive of blockchain technology … the whole industry is under the strong supervision of the authorities and (is) as closely controlled as possible,” Menteshashvili said.

But Billy Chan, the chief executive officer of Dropchain, said the proposed guidelines should not be solely seen in a negative light. “It’s not fair to say the government is stifling blockchain,” Chan said. “Instead, they’re trying to hold people accountable.”

Do you think that the increasing regulation of cryptocurrencies and DLT is stifling innovation, or is it an inevitable consequence of mainstream adoption? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.



from Bitcoin News https://ift.tt/2Swm6uD
Name

Bitcoin News,5117,Bitcoinist.com,4741,Cryptocurrencies,4741,Cryptocurrencies Latest News,5117,Cryptocurrency Latest News,4741,Cryptocurrency News,9858,
ltr
item
Cryptocurrency Latest News: China Seeks Public Feedback on Draft DLT Regulations
China Seeks Public Feedback on Draft DLT Regulations
https://news.bitcoin.com/wp-content/uploads/2018/10/shutterstock_533594779-768x768.jpg
Cryptocurrency Latest News
http://cryptocurrencylatest.blogspot.com/2018/10/china-seeks-public-feedback-on-draft.html
http://cryptocurrencylatest.blogspot.com/
http://cryptocurrencylatest.blogspot.com/
http://cryptocurrencylatest.blogspot.com/2018/10/china-seeks-public-feedback-on-draft.html
true
1236144943044321696
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy