China approves crypto law to regulate digital currencies

The Standing Committee of the 13th National People’s Congress in China made the decision to approve this Saturday, October 26, a new law that will regulate cryptography in the Asian country and will enter into force on January 1st, 2020, according to the information transmitted in the China CCTV Central Television.

The main objective of this regulation is closely linked to establishing a regulatory framework in the country, in order to standardize the application of cryptography and password management. The new regulatory framework establishes the role of a central cryptographic agency, aimed at leading public cryptographic work, creating guidelines and policies for the industry.

Centralized password management

The bill published on May 7 by a Chinese media will be aimed at largely focusing the centralized management of government passwords. The funny thing is that it does not explicitly mention cryptocurrency, although cryptography, a key component in the cryptocurrencies like bitcoin are based.

Considering the increasingly significant commercial cryptography for the development of the Chinese economy “clear guidelines and regulations are needed to evaluate the commercial cryptography technologies used in the main fields related to the national interest, since the current ‘loose’ system no longer it is suitable for the industry”, as specified in the bill before approval.

For Facebook CEO Mark Zuckerberg, this law is building firm foundations in the use of cryptography in the Asian country, a scenario that highlights the Chinese superiority in the space of digital currencies that could put the US dollar at risk: “China is moving quickly to launch a similar idea in the coming months. We cannot sit here and assume that because the United States is the leader today, it will always become the leader if we do not innovate.”

K.Villarroel

Source: infocoin