China: A Case Study Of Restrictive Blockchain Rules

by Marvin Dumont

Apollo Foundation is developing an unregulatable and untraceable cryptocurrency (APL). Our vision is to create the most feature-rich, all-in-one cryptocurrency that will give users the ability to perform any blockchain-related task offered by mainstream cryptos in a single platform. All in complete privacy. We are designing Apollo to be able to fill the needs of all other cryptocurrencies.

These features are important because governments around the world are tightening restrictions on how cryptocurrency and blockchain businesses can operate. Moreover, these developments show why privacy coins are important for users and investors.

Government Regulations

To see how regulations can run amok, look no further than China.

This month, Beijing issued draft regulations for blockchain service providers in the nation of 1.4 billion. (The rules will be applied retroactively to existing companies.) Not surprisingly, the Chinese government issued a ton of restrictions on blockchain operators. It’s unclear when the regs will become official.

Cyberspace Administration of China (CAC) is proposing to remove internet-based anonymity and wants blockchain firms to install systems that censor controversial views. Beijing doesn’t clarify how this can be done given that the distributed ledger immutably records transactions — but censor they must anyway.

KYC

CAC also requires firms to collect national ID card numbers so authorities can identify real-world names. Moreover, firms and users are subject to 24/7 monitoring and must accept “social supervision.” Firms will also need to store people’s data and their usage of services for six months, and to provide this information when requested.

Operators will be subject to annual review by the government, and presumably their license will be revoked for violating the above regulations. Article 9 of CAC’s draft prohibits activities that “disrupt the social order” although this is not defined in the document.

Beijing’s actions highlight the need to create a cryptocurrency — such as Apollo (APL) — that gives users and investors complete privacy and anonymity. Your business should be yours alone.