The Great Firewall has Chinese blockchain companies in its sights

Beijing, CHINA – Far more effective than anything President Donald Trump’s proposed great southern border wall, China’s internet censorship agency has clamped down on Chinese blockchain platforms. And this has proven to be punishing. It’s not business as usual as they are not only censoring content but also insisting that stored user data among other information must be disclosed with real names based on national IDs.

The Cyberspace Administration of China (CAC) released a statement that the regulations are meant to:

“advance the industry’s healthy and orderly development.”

For now, it’s more than a hindrance as the Chinese government has tightened its grip on cryptocurrencies and imposed severe penalties to those who do not adhere to the rules imposed. The blanket ban will not allow tech companies from using blockchain technology to “produce, duplicate, publish, or disseminate” any content that is not approved by Chinese law.

Since 2017, a ban was imposed on all ICOs and the operation of crypto exchanges. Many have moved their registered offices overseas, but their locally based operations are severely hampered by the shuttering of IPs and domains in addition to possible blocking of public chains from synchronising. Nevertheless, the country is still a proponent of blockchain technology and there are various sectors that are conducting trials on how to implement this nascent technology.