The Standing Committee of the All-China Assembly of People’s Representatives adopted a new cryptography law, which will enter into force on January 1, 2020. This happened the day after Chinese President Xi Jinping called the country to “take advantage of the blockchain technology.”
China has so far banned cryptocurrency trading and is only planning to launch its own digital currency. However, cryptography, as an integral basis of blockchain technology, can be the key to increasing the country’s competitiveness in the cryptocurrency market.
The new law is aimed at solving the emerging regulatory and legal problems in cases of using commercial cryptography, since they play an increasingly important role in the development of the Chinese economy.