China's cyberspace authority has unveiled the regulatory guidance for all companies that provide blockchain services. This is said to become the first such document at the national scale in the country.
According to the document released on the website of Cyberspace Administration of China (CAC), blockchain obviously has some important features and can have a positive impact on the financial development of the country, but the technology also brings certain risks.
As a result, CAC developed the guidance to maker clearer the responsibilities of the companies providing blockchain services in terms of the security management. Specifically, blockchain firms will reportedly have to provide the authorities with access to the data as well as implement verification via IDs.
The new rules will come into force beginning from February 15.
Along with service providers, individuals that use blockchain are also subject to the regulation. As the document reads, they will have to register names, offered services, business area as well as servers' addresses. All the data is said to be public and checked by the authority every year.
Notably, the violation of the guidance is punishable by the fine of CNY 5,000-500,000 ($740-74,000). The companies that will break the rules regularly will face criminal proceedings.
For reference, Beijing banned ICO, crypto trading and other activities related with digital currencies, but shows a somewhat softer position towards blockchain development in the country.