China Will Soon Require Blockchain Users To Register With Their Government IDs

China’s central government recently announced that it had drafted regulation which would require blockchain users to register with their government IDs, stripping blockchain users of their anonymity. Please find below some reactive commentary from industry leaders on the decision.

Blockchain Users

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Fran Strajnar, CEO and Co-founder of Brave New Coin, a leading data and research company focused on the Blockchain and Cryptographic Assets industry said:

[REITs]

Q3 hedge fund letters, conference, scoops etc

“Due to the broad language used in this draft policy, anything remotely ‘blockchain’ is essentially subject to compliance considerations, not just cryptocurrencies and tokens.

It’s interesting that this came from Cyberspace Administration of China (CAC). It may be portentous of things to come, as the CAC is in-charge of the social-credit scoring system. The PBOC will undoubtedly release it’s own centralized cryptocurrency (a “Digital Yuan” ) and combine it with their social scoring system. The future is going to be decentralized unstoppable technology vs ever increasingly censored solutions.”

Jake Choi, CMO at Fantom, the world’s first DAG based smart contract platform said:

“Privacy is and always has been one of the greatest values of cryptocurrencies. Bitcoin, and the vast array of cryptocurrencies in the market today, were created to provide users with a decentralized monetary framework that enables users to make transactions while maintaining their privacy and shifting the power away from central authorities. China’s new regulation strips people of their right to anonymity and as industry professionals, it’s our duty to help users reclaim their privacy while still raising standards around security and user-friendliness. To do so, we can start by creating better methods of KYC.”

Rafael Delfin, Head of Research of Brave New Coin, a leading data and research company focused on the Blockchain and Cryptographic Assets industry said:

“It is unfortunate to learn of China’s increasing grip on distributed ledger technology. Technically, a country cannot strip privacy technology from a blockchain protocol but they can control the access points, such as exchanges, to crypto assets, which is what this latest Chinese regulation is proposing. Hopefully the community will keep finding ways to circumvent such measures. While we applaud the Chinese’s governments efforts to prevent consumer abuse, this type of privacy restricting regulations pose a threat to any Chinese activist and citizen that is critical to their government.”




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Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and three kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own 2.5 grams of Gold