Cryptography Law Passed By Chinese Officials

A law on cryptography will officially come into effect on the first of January 2020 after it was passed on Saturday by The Standing Committee of the 13th National People’s Congress in China.

This announcement came a day after the nation’s president, Xi Jingping called the country to seize all potential chances related to blockchain tech.  

As reported by CoinDesk:

“While China still bans cryptocurrency trading and its national digital currency is not yet hatched, cryptography, as an integral underpinning of blockchain technology, could be key to the country’s push to be more competitive in the blockchain space.”

This new law looks to deal with all the emerging regulatory and legal hurdles that commercial cryptography use-cases face as they play a significant role in the development of the country’s economy.

Roughly translated the final draft before approval states:

“Clear guidelines and regulations are needed to evaluate commercial cryptography technologies used in the major fields related to the national interest as the current ‘loose’ system is not suitable for the industry anymore.”

The country’s national congress said that the new law will encourage further research and development on commercial tech. This would, in turn, build up an inclusive standardised regulatory system for the market. 

This new law, set to come into effect next year, will also encourage nationwide educational efforts like public exhibitions. This will help promote cryptography for political figures, firms and social groups.

As per the local Chinese news outlet, Xinhuanet.com:

“The cryptography is aimed at standardizing the application and management of passwords, promoting the development of the password business, ensuring network and information security, and improving the scientific, standardized and legalized level of password management. It is a comprehensive and basic law in the field of passwords in China.”

It will be interesting to see how this new law plays out. For more news on this and other crypto updates, keep it with CryptoDaily!