As early as February 19, new rules for regulating companies operating in the blockchain and cryptocurrency fields will begin to operate in China. They place very high demands on businessmen and FINTECH companies, but they eliminate legal gaps in the regulation of the industry.
According to the new laws, the entrepreneur will have 10 days to register his activities. That is the term called the maximum for submitting an application. For this, a special system “Information Services Management” has been created.
A ban is imposed on anonymous transactions. Every client of the company will have to pass verification. Although you do not have to present a personal document, it is enough to record a phone number in the system.
At the same time, the rights of supervising bodies are significantly expanded. Supervision will be handled by the State Information Bureau. It will be able to request any information, up to a copy of the hard drives of the server. Moreover, a businessman will be obliged to keep data on all activities on it for at least six months.
As a matter of fact, the authorities introduce total control over the activities of companies. In fact, a set of 24 articles introduces censorship into business activities. However, one should not expect anything else from the authorities of the PRC. Back in 2017, there was actually a sweep operation here, which forced many businessmen to move to neighboring countries.
But it cannot be said that this negatively affected the state of the industry as a whole. The rights of private investors are protected and their capital is safe. For them there is no ban on the placement of funds in certain assets.
Chinese authorities are paying great attention to cryptocurrency, even at the state level. It was here that the Blockchain Institute was first created in the world. The 24 articles put into effect will allow companies to conduct business on a legal basis, which will stabilize trading in digital financial assets. The market calmly reacted to this news, the volatility of the Bitcoin rate after its publication remained within 1%.