China is set to begin enforcing blockchain censorship next month to “advance the industry’s healthy and orderly development.”
Censorship and China go together like a hand and glove, sadly. The communist country looks to take advantage of the latest technologies, but it also wishes to retain absolute control of everything under its purview. This censorship is now extending to the blockchain as new regulations are set to take force next month.
Anonymity Not Allowed
The Cyberspace Administration of China (CAC) unveiled the new regulations last October. Under the new guidelines, activity on blockchain platforms can easily be monitored by the state.
By law, blockchain platforms will now require real-name registration for their users, which is to be handled by a telephone number or an ID. They will also have to store data and allow the authorities full access whenever they wish. Lastly, content will be censored.
The penalties for breaking these regulations can include fines and prosecutions. All of this is being done to “advance the industry’s healthy and orderly development.” (That’s some high-grade Orwellian language there!)
Blockchain Only the Central Committee’s Way
The cryptocurrency industry once flourished in China, but the government has cracked down on the ecosystem in recent years. Many crypto mining companies have moved to greener pastures, and dealing in crypto was dealt a deadly blow when the government banned ICOs and local cryptocurrency exchanges back in 2017.
Bitcoin trading flowed through China at one time, with a full 90 percent of all trades featuring the country’s fiat. Now that percentage has dropped to less than 1 percent.
Despite their bitterness towards cryptocurrency, the Chinese government is still very bullish on the blockchain. Several major cities have launched blockchain hubs with tens of millions of dollars allocated for such projects.
However, China wants blockchain development and expansion done under its terms and watchful eye. The central government already censors the internet, movies, and practically everything else, so it’s no surprise that the blockchain did not escape such treatment.
What do you think about this new blockchain censorship by the Chinese government? Let us know in the comments below.
Images courtesy of Pixabay.