The National People’s Congress of China has passed what we term as the first “Crypto Law” on October 26. The law lays the foundation for the regulation of cryptography in the warm-up to her digital currency. A lot of people believe that this is a possible step towards the launch of China’s cryptocurrency. The Chinese media outlet CCTV released the news on October 26.
According to reports, the law, which will take effect on January 1, 2020, sets standards for the application of cryptography and the management of passwords. The law also sets out the responsibilities that a new central, cryptographic agency will have.
The law is said to focus primarily on the central management of passwords by the government, but also cryptography. Even though cryptocurrency is not explicitly mentioned, it is still an interesting development for the crypto sector. Dovey Wan, founder of Primitive Crypto and familiar with Chinese affairs, states in a tweet:
The most important thing is the development of new cryptography, hashing algo, even the use of technology will now be officially legally recognized
This means that you must follow the CCP standard for all “encrypted” behaviours, which can be VERY broad, from mining to block propagation.
According to twitter user Dovey Wan,
“4/ It’s a pretty long legal doc and will take a look again tmr morning. Overall it’s the first law specific abt cryptography, private/public key management and infosec related matters. Maybe more close to the ENCRYPT Act and Secure Data Act from the US
5/ the key take away 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” behaviours, which can be VERY broad, from mining to block propagation…”
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Chinese President Xi Jinping recently expressed a particularly positive attitude towards blockchain technology. He stated in a speech that blockchain should be seen as “an important breakthrough for independent technological innovation”.
China is also reportedly working on a central bank-issued digital currency (CBDC). This is a cryptocurrency that is issued by a central bank as an alternative to paper money. It is not yet clear when this cryptocurrency will be launched.
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