The Chinese government has approved policies that oblige blockchain companies, among other things, to register the identities of their users. This means users can no longer count on the anonymity offered by technology.
China has already taken several steps to gain more control over the blockchain and cryptocurrency industry. The Cyberspace Administration of China (CAC) therefore approved policies that allow access to all data on a blockchain and censors the data.
The policy will take effect on 15 February and also obliges all blockchain companies to register their users by means of a personal number or telephone number. If the companies do not do this, fines will be imposed.
According to the CAC, the policy ensures “a healthy development of the blockchain industry in China”. Despite the fact that anonymity is one of the foundations of blockchain technology, the CAC said:
The development of blockchain technology has provided great opportunities for the economy and society of China. But in the meantime it is also used by criminals to store and distribute illegal information.
The authority will censor all content that, in its view, constitutes “a threat to internal security”. If companies or users still distribute such content, a fine of between € 2,600 and € 3,800 will be imposed.
China continues to step up the pressure on the industry. In 2017 the country banned ICOs and the trade in cryptocurrencies. The Chinese government, however, remains positive about the technology behind cryptocurrencies and therefore stimulates research into blockchain technology in the country.