China announces draft bill for Blockchain startups

The Chinese high-level censorship agency (CAC) has defined how it plans to regulate Blockchain-related service providers in the country. The document was entitled "The Regulation for the Management of Information Services in Blockchain".

The rules, if promulgated, apply to any entity based in China considered as an information service provider in Blockchain and would represent one of the first regulatory frameworks in the country specifically designed for the Blockchain industry.

In the draft, CAC defines Blockchain information service providers as "entities or nodes [nodes]" that provide information services to the public - "institutions and individuals" - using Blockchain technology through desktop or mobile application sites.

Among the 23 articles proposed in the draft, one requires that Blockchain service providers register with the agency within 10 days of the start of the provision of services to the public.

The proposed draft also dictates that Blockchain startups must record their names, service types, industry fields, and server addresses with the CAC. This information would be publicly available and CAC would review annually.

Although the agency does not clearly state which Blockchain startups are under its definition, some industry experts in China said the proposed rules could have an impact on the "super nodes" of certain Blockchain networks.