National People's Congress approved the law “On Cryptography”, which defines the official procedure for using encryption tools.
According to observers, the new regulatoryThe act may be one of the preparations for the launch of the People’s Bank of China, which is in development of the national digital currency. The law enters into force on January 1, 2020.
Primitive Crypto Founding Partner Davi Wang shared this on Twitter with a link to the official media:
Last piece of China BREAKING News before bedtime -
This time is DEFINITELY CRYPTO ???
A “Crypto Law” just passed by the National People’s Congress ... https://t.co/l6RX8Ivxnv
?? it’s hard not to belive all these are not paving the path for Digital RMB .. more reads below pic.twitter.com/x2FbskD3nk
- Dovey Wan? ? (@DoveyWan) October 26, 2019
Van cites several excerpts from the document. Thus, the Central Agency for Cryptography under the leadership of the Chinese Communist Party (CCP) will develop fundamental policies for the use of cryptography and will coordinate efforts to solve important national security problems.
The agency will encourage and support research in the field of cryptography, protect intellectual property rights and promote the development of public / private key technology.
“In general, this is the first law directly related to cryptography and the management of private / public keys, - Wang writes.
Development of a new cryptography algorithmhashing and even the use of technology will be in the official legal field. This means that you have to comply with the PDA standards in all “encrypted” behaviors, which can be interpreted very widely: from mining to block transfer. ”
Although direct mention of cryptocurrencies asThere are no decentralized or state ones in the law, Wang believes that, among other things, he is aimed at preparing for the launch of the digital renminbi at the end of this or the beginning of next year.
Earlier this week, Chinese leader Xi Jinpingspoke about the need to develop initiatives in the field of blockchain, highlighting a number of areas where the technology can be successfully applied to solve current problems.