The 13th National People’s Congress voted on the afternoon of 26 October to pass the first cryptography law, which will take effect on January 1, 2020. The cryptography law aims to stimulate cryptography development according to a Chinese media report
The new law came a day after President of China X delivered a speech where he said that he wants China to be a leader in the new, emerging blockchain technology.
China’s government has banned cryptocurrency trading and there are rumors that the country will launch its own digital currency. However the last two days the Chinese administration is showing a lot of interest in cryptography and blockchain technology, which may have fueled the massive bitcoin price rally yesterday by nearly 40%.
The new law tends to regulate the cryptography space as it plays an important role in the Chinese economy. The draft proposal writes:
“Clear guidelines and regulations are needed to evaluate commercial cryptography technologies used in the major fields related to the national interest as the current ‘loose’ system is not suitable for the industry anymore.”
Regulating and standardizing the space China aims to promote the development of this new technology.
Maybe this is how countries start to FOMO in crypto and if the virus spreads maybe the 40% rally we have seen yesterday will look small compared to what may happen next.