Chinese authority brings in new regulation for blockchain firms
Chinese blockchain firms will again face an interference from the Cyberspace Administration of China (CAC) by its new set of regulations. Announced on Thursday, the official website of the regulatory authority clarified that the norms will come into effect from 15th February onward. The notification has explicitly stated that “to regulate blockchain information service activities” and also to “promote the healthy development of blockchain technology and related services” among other safeguarding factors, these regulations have been formulated.
These provisions are directed towards those entities and organisations who “provide information and technical support to the public using blockchain technologies”. The authority has send out stringent notification to these firms. It says that if they fail to conduct the formalities or “fill in the false filing information” then the company needs to rectify the mistake within a time constraint or shall be ready to face a fine ranging within 10,000-30,000 yuan.
CAC has also allotted the companies 20 days time period within which they have to register the company details for the completion of “the relevant formalities”. The provision has also obliged the service providers to “cooperate with the supervision” carried out by the information department and offer all the required information, support and assistance. Also, the public complaints and reporting should be “promptly” handled.
In case of cancellation or modification of service, the blockchain service provider has to follow the procedure of the authority. When the firm decides to terminate its service, then 30 days prior to the cancellation the firm should fulfil the formalities and take the necessary measures. And, when service item modification or change in website is concerned, then “it shall go through the change procedures within five working days from the date of the change.”
The fundamental objective of these newly formulated regulations is to step up the standards of service, the professional quality along with the promotion of “industry credit evaluation system construction”. As per the norms, the service providers should have the appropriate technical condition necessary for their services.
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