China shuts down blockchain accounts suspected of violating laws

Source:Global Times Published: 2019/11/21 0:08:16

Photo: VCG

Chinese regulators shut down several blockchain social media accounts on Wednesday as part of efforts to strengthen regulations on the emerging sector in which China has gained an edge.

Late on Wednesday, several blockchain-related WeChat accounts were shut down as, "they are suspected of violating relevant laws, regulations and policies under users complaints and platform reviews," according to a report by industry news site BlockBeats.

Industry analysts have warned that despite the advantages China has in the industry, it is still quite challenging for authorities to regulate and oversee the new technology. They say abuse of blockchain technology could pose dangers for China and Chinese people.

Blockchain technology refers to a digital database with information that can be simultaneously used and shared within a large decentralized network. It has rapidly developed around the world in recent years.

On Monday, the Xinhua News Agency reported that several listed companies are suspected of speculating on blockchain technology and over 500 of China's 3,000 listed firms said they are legitimately connected to blockchain technology, yet only 40 can substantiate their claims with full disclosure and concrete business.

A blockchain white paper released by the China Academy of Information and Communications Technology showed that China has obtained more than half of all blockchain patents globally and is home to about a quarter of global blockchain companies.

The Chinese central government stressed the importance of the blockchain technology in October, regarding it as a crucial breakthrough for the self-innovation of core technologies.

Posted in: ECONOMY

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