China’s First Crypto Law Makes Way for National Cryptocurrency

China, a country notorious for its strict regulations designed to suppress the use of digital currencies, has recently announced a new regulatory framework for cryptocurrencies that will be taking place in January of next year.

Date: 
November 01, 2019
Read time: 
2 minutes

China’s First Crypto Law Makes Way for National Cryptocurrency

Author: Dylan B
Date: 
November 01, 2019
Read time: 
2 minutes

China, a country notorious for its strict regulations designed to suppress the use of digital currencies, has recently announced a new regulatory framework for cryptocurrencies that will be taking place in January of next year.

China, a country notorious for its strict regulations designed to suppress the use of digital currencies, has recently announced a new regulatory framework for cryptocurrencies that will be taking place in January of next year.

Although China has not stated whether or not these new developments are tied into their more recent interest in cryptocurrency, we do know that the country has already announced their intentions to release their own cryptocurrency, DC/EP, in the near future.

Although the new regulatory framework does not specifically mention the term “cryptocurrency”, it does establish its own agency in the country for the oversight of cryptographic technology applications and the management of passwords and public projects that pertain to crypto as a whole. The full regulatory framework was reported on a Chinese news site, which summarized it by stating: 

“The key takeaway is — the developing of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means you need to follow the CCP standard for all ‘encrypted’ behaviors, which can be VERY broad, from mining to block propagation.”

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Although China has not stated whether or not these new developments are tied into their more recent interest in cryptocurrency, we do know that the country has already announced their intentions to release their own cryptocurrency, DC/EP, in the near future. This new cryptocurrency will act as a digital alternative to the Yuan and will be distributed through banks and major companies throughout the country during its release. It is also intended to give citizens the opportunity to participate in a more anonymous and faster economy for their needs. 

These speedy developments come in the wake of the Libra project, which, while is certainly not faring well at the moment, encouraged China to begin developing their own project as a means to maintain monetary sovereignty. Although it is doubtful, we may see the release of its national cryptocurrency later this year. 

Posted by Dylan B

Dylan Buckley is a writer based in California. He became interested in cryptocurrency upon discovering it in 2014 and soon started investing as well as writing for a wide variety of clients and crypto-startups in the space. When he is not producing content for individuals and businesses, he is typically working on his own self-development content or making music.

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