China's Congress Passes Cryptography Law, Effective Jan. 1, 2020

While China still bans cryptocurrency trading, cryptography could be key to the country’s national push to be more competitive in the blockchain industry.

AccessTimeIconOct 26, 2019 at 2:24 p.m. UTC
Updated Sep 13, 2021 at 11:37 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Standing Committee of the 13th National People's Congress in China passed a cryptography law on Saturday that will be effective on January 1, 2020, according to a Chinese media report.

The announcement came one day after Chinese President Xi Jinping called on the country to seize opportunities in blockchain technology.

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.

The new law aims to tackle emerging regulatory and legal challenges in commercial cryptography use-cases as they play an increasingly important role in developing the Chinese economy, according to the law's latest draft proposal prior to approval.

According to the proposal:

“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."

China’s national congress said the new law will encourage research and development on commercial cryptography technologies, while building up an inclusive standardized regulatory system for the market.

The Chinese congress released a draft proposal for the new law in July, soliciting public comments.

The proposal includes a range of issues from how compatible the industry standards should be with other international cryptography systems to whether companies should voluntarily verify their commercial use-cases with authorities.

According to the Chinese congress, the new law will also encourage nationwide educational efforts, such as public exhibitions, to promote cryptography among government officials, companies and social groups.

Chinese flag image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about