New Cryptography Law Passed in The Aftermath of President Jinping’s Blockchain Statement
Days after the extraordinary rally of BTC gaining 40% in 24 hours and China’s President Xi Jinping going ALL-IN on blockchain, according to various reports by Chinese news outlets, the standing committee of the 13th National People’s Congress of China has voted to pass a new cryptography law set to be in effect from the beginning of January 2020.
The new law sets a legal cryptographic standard for the application and management of sensitive information such as passwords, network, and information security while maintaining national security and social public interests.
Creating a legal framework around cryptography is likely a move by China’s government to control and assess emerging technologies, enabling China’s highest levels of authority to stay ahead of new trends.
A draft proposal for the newly introduced law was released earlier this year.
“The State Council standardization administrative department and the national password management department shall organize the formulation of national standards and industry standards for commercial passwords according to their respective responsibilities.” – Article 22, Cryptography Law Draft (translated)
Like the president’s statements, the draft did not mention Bitcoin or any cryptocurrencies but focuses more on the underpinning technology. In this case, password and information control through a regulated usage of cryptography, which also provides the foundation behind the security of digital assets.
With China announcing and aiming to be a leader in the blockchain industry, the news of a cryptographic law being passed and put into effect could be more than a coincidence.
China’s increasing superiority with blockchain, cryptocurrencies, and technology could undermine the U.S. dollar!
“We can’t sit here and assume that because America is today the leader that it will always get to be the leader if we don’t innovate.” – Mark Zuckerberg, CEO of Facebook
This post is for educational purposes. All information used is referenced accordingly. This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.