The Chinese government has announced its intention to impose restrictions on almost all companies whose business involves blockchain technology. The news comes from the hand of a recent publication by the Cyberspace Administration of China. This agency is the highest authority for any decision that involves the regulation of the Internet or simply the censorship of content. The new regulations will affect the information services that use the aforementioned technique.
China is a country with many contradictions and this is very visible in its economy. Despite being a communist country, it has many private capital companies. The relationship that maintains with the technological companies is of mutual interest and benefit but with a high level of tension. In the case of cryptocurrency companies, the link has always been particularly difficult.
The Chinese government has praised blockchain as a technology for the constitution of a database. However, it has acted on numerous occasions against the interests of companies engaged in transactions with cryptocurrencies. The explanation is simple, blockchain can be used to control or to escape control of a government depending on whose hands the system is.
Under the new regulations the government will require companies to register their names, type of service and the addresses of the servers for an annual review. They must also obtain the real names of their users as well as the numbers of the national identity documents so that they are stored in such a way that the judicial authorities can access them.