Posted 3 years ago | by Ben Armstrong

China Approves First-Ever ‘Crypto Law’: Will Take Effect in January 2020

Chinese state-run CCTV reported that The Standing Committee of the 13th National People's Congress in China has passed a new law regulating cryptography on Oct. 26 that will take effect on Jan. 1, 2020.

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

Implicit Cryptocurrency Regulation

The draft of the law was published on May 7 which is largely focused on government centralized password management and does not explicitly mention cryptocurrency, though it does focus on cryptography, a key component underpinning cryptocurrencies such as Bitcoin, Ethereum, Litecoin, And Ripple’s XRP

A local news source explained:

“The key takes away is — the developing of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means you need to follow the CCP standard for all ‘encrypted’ behaviors, which can be VERY broad, from mining to block propagation.”

Preparing for A National Crypto in China

Though there is no official timetable for its launch, the law is likely building a foundation for an upcoming Chinese national cryptocurrency.

As Cointelegraph reported yesterday, China's president President Xi Jinping considered that the country should "seize the opportunity" of bitcoin's blockchain technologies as the reason behind bitcoin's sudden rally. Xi said at the 18th collective study of the Political Bureau of the Central Committee in Beijing.

To Wit:

"We must take the blockchain as an important breakthrough for independent innovation of core technologies...(we must) clarify the main direction, increase investment, focus on several key core technologies, and accelerate the development of blockchain technology and industrial innovation."

Meanwhile, this past week, Facebook’s Mark Zuckerberg, who was savaged by U.S. senators over his plans for a bitcoin rival dubbed Libra, warned that Chinese superiority in the digital currency space could put the U.S. dollar at risk.

"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,” Zuckerberg argued in an official statement.

About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g China's Crypto Law Goes into Effect January 2020Ben Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at or contact him on Twitter @BitBoy_Crypto.