China Approves Draft Law on Cryptography as Cryptocurrency Links Grow 

China might have already instituted an official ban on cryptocurrency trading and crypto exchanges, but the country has so far been unable to avoid crypto-related news. However, links between Beijing and cryptocurrency legalization have been on a different level this year, and it finally seems that the country might be ready to accept the revolutionary technology. 
Cryptography for password management 
The Standing Committee of the 13th National People’s Congress in China has passed new legislation which will cover cryptography (and by extension, cryptocurrencies), local news medium CCTV reports. According to the news medium, the legislative framework, which was passed into law on October 126, is expected to take effect from January 1, 2020. 
CCTV notes that the law was passed with the aim of regulating the application of cryptography in the management of passwords. It establishes the creation of a central cryptographic agency in China, which will help to lead all government-sponsored cryptography work in the country. A draft of the regulation was initially published on May 7, and while the content of the draft was primarily focused on the use of centralized government password management, it also focuses on cryptography (which is an underpinning technology that enables crypto assets to function)
This is significant news as Beijing had banned everything crypto for almost two years now. While peer-to-peer crypto exchanges have still made it possible for Chinese crypto enthusiasts to get their hands on their favorite crypto assets, they have found it easy to succeed due to their business model. Mining is the only crypto-related activity that has been thriving in the country, but a blanket ban on that sector has been mulled in the past. 
China edges closer to a cryptocurrency 
Regardless, there have been continuous links between the Chinese government and a potential crypto asset (or, at the very least, legalization of the ones currently available on the market). 
On October 23, Facebook chief executive Mark Zuckerberg appeared before the United States House of Representative, where he tried to make a case for why Libra should launch. Among his arguments was the fact that China is currently working on a crypto asset, and allowing Libra could be the only way to save the United States’ prospects of retaining its position as a leader in the financial and tech spaces. 
“China is moving quickly to launch a similar idea in the coming months. We can’t sit here and assume that because America is today the leader that it will always get to be the leader if we don’t innovate.” 
At the same time, Chinese President Xi Jinping appeared at a Politburo Committee session on blockchain technology trends on October 24, where he is reported to have welcomed the application of blockchain technology and its innovative features in the country. We must take blockchain as an essential breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on several key technologies, and accelerate the development of blockchain and industrial innovation.”
Beijing might not have opened its arms to crypto yet, but the links continue to be stronger. 
The post China Approves Draft Law on Cryptography as Cryptocurrency Links Grow  appeared first on InsideBitcoins.com.
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Author: Jimmy Aki

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