The past 26 of October (of this year) various sources have reported that China has approved its first law cryptographic; this through the National People’s Congress. Such an event occurred on the date mentioned above. Now, the regulations applied to this first law, crypto, there are different aspects to be taken into account; which is worth knowing about.
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Law cryptography in China: major Changes
As has been mentioned, in China, a law was passed that focuses on cryptography; this by means of a meeting which corresponds to the fourteenth (14th) meeting of the National Congress of People. At that meeting, voted in favor of the implementation of the law on cryptography, which seeks to regulate and control various aspects of the world of crypto. It is worth mentioning that, all this will be done through a central agency that will work to create guidelines and policies, that allow to promote this industry. Therefore, it is more than possible that China also create their own agency, crypto, so that this regulating the market within the territory of the country. Also, it is important to add that we have already published a draft of this law, such information was uploaded by a means of news out of China. In the draft, it is possible to find the various points that were expected to include within the law cryptographic.
Date on which shall enter in force
Having been approved, is established, the period in which this law shall enter into force. Therefore, it is important to mention that the date is extremely close, because this corresponds to the 01 of January of the next year (2020). This is already a fact, since it was reported in an official way during the event that the law passed in cryptographic.
New path towards the criptomoneda China national
It is not a secret that the implementation of this law, it represents the foundations that are required for China to create its own criptomoneda. Despite the fact that within the draft does not specify anything regarding a criptodivisa national, previously confirmed that the asian country will open a way in the market of the cryptocurrencies. In fact, recently the president of China, Xi Jinping, called on the country rushing to adopt the technology blockchain. Certainly, the creation of a criptomoneda in China could pose major risks to other criptodivisas who expect to enter the market; this is something that has already been accepted, even by the CEO of Facebook, Mark Zuckerberg, who stated the following: “China moves quickly to launch a similar idea (to Pound) in the next few months. We cannot sit back and assume that because the united States is the current leader, it will remain so in the future if you do not innovate”. Clearly, these statements show the great concerns of Mark, with regard to the project of the criptomoneda of Facebook, which looks at risk with the CBDC of China.
How does this law of the market, crypto?
Law cryptography does not directly affect the market for crypto, except for the fact that further limits the negotiations with cryptocurrencies within China; however, it is a situation that already exists. What you’re really looking for this law, is to promote the use and trade of the criptomoneda national, so this would be the direct effect of their implementation. Now, what could affect the market crypto, it is the CBDC of China; which, could position itself quickly as one of the cryptocurrencies most commonly used, this is due to the large number of inhabitants of the country, who could be interested in put it to use. However, not necessarily be a competition of cryptocurrencies as Bitcoin, Ethereum, or other. The following two tabs change content below. I am a young man from Venezuela 18 years, lover of technology, innovation, and economic events that govern the world. One of my passions are cryptocurrencies.