The Standing Commission of the 13th National People's Congress in China has passed a new law regulating cryptography on Oct. 26 that will take upshot on Jan. ane, 2020, reports local news outlet CCTV.

Per the study, the new regulatory framework aims to set standards for the application of cryptography and the management of passwords. The new regulatory framework establishes the role of a central cryptographic agency meant to lead public cryptographic work, creating guidelines and policies for the industry.

Implicit cryptocurrency regulation

The typhoon of the law was published on May seven past a Chinese news outlet. The text is largely focused on government centralized countersign management and does not explicitly mention cryptocurrency, though it does focus on cryptography, a key component underpinning cryptocurrencies such as Bitcoin.

Wan explained:

"The key accept abroad is — the developing of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means y'all need to follow the CCP standard for all 'encrypted' behaviors, which tin can be VERY broad, from mining to cake propagation."

Preparing for Red china's national crypto

She concluded that the law is building the foundation for the upcoming Chinese national cryptocurrency, though there is no official timetable for its launch, one Chinese official confirmed in September.

Every bit Cointelegraph reported yesterday, Mainland china'southward President Xi Jinping has chosen for the country to accelerate its adoption of blockchain technologies.

Meanwhile, this past week, Facebook's Marking Zuckerberg warned that Chinese superiority in the digital currency space could put the U.Due south. dollar at risk in an attempt to sell lawmakers his plans for the Libra stablecoin.

"China is moving quickly to launch a like idea in the coming months. We tin can't sit hither and assume that because America is today the leader that information technology will always get to be the leader if nosotros don't innovate," he argued in an official argument.