China approves its first cryptocurrency law, which will take effect in January

According to CCTV, on October 26, the Standing Committee of the Thirteenth National People's Assembly approved a new law for the regulation of cryptocurrencies, which will come into force on January 1, 2020.

According to the report, the new regulatory framework aims to establish standards for the application of encryption and password management. The new regulatory framework outlines the role of a central cryptographic agency aimed at guiding the work done in the sector at the public level, creating guidelines and policies for the industry.

The bill was published May 7 by a local news agency. The text is largely focused on centralized management of passwords by the government and does not explicitly mention cryptocurrencies, although it focuses on cryptography, the key component underlying coins like Bitcoin.

"The main concept is as follows: the development of new cryptography, hashing algorithms, including the use of technology, will be in the official legal regime. This means that you must follow the CCP standard for all" encrypted "behaviors, which include a VERY wide range of activities, from mining to block propagation. "

Preparations for the Chinese national cryptocurrency

The law is building the foundations for the upcoming Chinese national cryptocurrency, although there are still no official dates for its launch, as a Chinese official confirmed in September.

As reported by Cointelegraph, Chinese President Xi Jinping asked the country to accelerate the adoption of blockchain technologies.

Meanwhile, last week, during the hearing on the Libra stablecoin, Facebook CEO Mark Zuckerberg said that China's superiority in the digital currency sector could jeopardize the US dollar.

"China is moving quickly to launch a similar idea in the coming months. We cannot sit here and assume that, since today the leader is America, it will always remain the leader if we do not innovate", he has declared.