Last week, the Chinese government officially implemented the Regulations on the Management of Blockchain Information Services by the National Network Office. The new regulation has prompted many legal questions, do these companies and project teams need to file? If you insist on not filing, what impact will these projects have on their domestic development?
Chinese lawyer, Xiao Wei, a partner of Beijing Dacheng Law Firm, conducts an in-depth interpretation and had various legal advice for the blockchain companies that wish to do business in the middle kingdom.
A major question is whether foreign companies who work in China but are registered as overseas companies and hold public chains and nodes must file with the government, and Wei has confirmed the confusing issue stating:
The blockchain information service provider mentioned in this regulation refers to the entity or node that provides the blockchain information service to the public and the organization or organization that provides technical support for the blockchain information service. This is a foreign foundation, so it also needs to be filed.
He also sent a clear warning to those who might wish to circumvent some rules and not register certain aspects of their company:
“(A) refusal to file, project development, project operation, project acquisition, project online and offline activities, etc. will be affected.”
This has big ramifications for companies like Ethereum and EOS, who have a big market within China. Wei said,
“If Ethereum, EOS want to build domestic nodes, or let domestic developers join, they also need to file for filing. We will wait and see the filing of these international public chain services.”
But for Wei, this regulation should not be seen in a pessimistic view, rather he feels that:
Only regulation can make that industry grow globally.
So, there you have it. Wei has confirmed the reports and reiterated the facts. I wonder how many will file their details, or if we will see a mini exodus of blockchain companies from China. My hunch says no, but you never know.