China Cybersecurity System Forces Blockchain Projects to Censor and Share Private Data with Authorities

The Chinese government seems to be taking further steps to control its population. Authorities are pressing blockchain companies to censor content, store users’ private data such as identity and share this information with the local government. The main intention behind it is to support ‘orderly development.’

The Cyberspace Administration of China (CAC) is pressing users of blockchain platforms to submit their real names and be compliant with strict know-your-customer (KYC) procedures. In a report released on January 10, Reuters says that the CAC will require users to provide national ID or their telephone number. Those companies that do not follow these rules could be subject to fines or prosecution.

Although the intention is to regulate the market and keep it under its control, the government encourages companies to keep investing in distributed ledger technology (DLT). China has been an important player in the blockchain market. Back in 2017, China was the most active filer of blockchain patent applications in the world.

Back in September 2017, the Chinese government imposed a ban on cryptocurrencies and Initial Coin Offerings (ICOs). The Chinese Yuan was one of the most traded fiat currencies against Bitcoin. Now, they represent less than 1% of the total Bitcoin transaction volume according to some reports.

Clearly, China is taking measures that are against the Bitcoin, blockchain and crypto ethos. In the future, companies in China would face the consequences of being highly regulated. Users would search companies that protect their privacy and handle their information seriously rather than giving all the data to regulators.

China has several companies that are developing different blockchain networks and solutions. In the future, new firms that want to enter the space might be persuaded and find a more blockchain-friendly country for their investments.

Get Free Email Updates!

*Action Required* Enter Your Email for Trending Crypto News & Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Coin Market Cap Price Change 24 Hour Volume
BTC $162.99B $9,174.6684 -0.06% $6.56B
ETH $28.62B $268.6598 0.28% $1.94B
XRP $18.79B $0.4420 3.33% $1.06B
LTC $8.16B $131.0442 -2.38% $730.86M
BCH $7.51B $420.7254 -1.53% $187.22M
EOS $6.44B $7.0011 -0.33% $697.43M
BNB $4.87B $34.4695 6.62% $378.14M
BSV $3.94B $220.5757 3.28% $198.63M
USDT $3.53B $1.0025 -0.03% $5.94B
XLM $2.47B $0.1274 -0.54% $84.21M

Get 3 Free Bitcoin eBooks for Limited Time Only

Receive three exclusive user guides detailing a) What is Bitcoin b) How Cryptocurrency Works and c) Top Crypto Exchanges today plus a bonus report on Blockchain distributed ledger technology plus top news insights.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.