Password Law Enacted in China

Januar 2, 2020, by Marko Vidrih on ALTCOIN MAGAZINE

On January 1, China officially introduced a law defining the procedure for managing cryptographic keys, reports China Money Network.

The law was passed by the Standing Committee of the All-China People’s Congress on October 26th. In accordance with its text, passwords are divided into three main categories: key, general and commercial.

It was previously noted that this is the first law directly related to cryptography and private/public key management. According to observers, the new regulatory act may be one of the measures to prepare for the launch of the People’s Bank of China, which is being developed the national digital currency.

“The National People’s Congress just passed “密码法” — “The cryptography Law”, which will take effect on January 1, 2020. By looking a the news it seems like the law is aimed at “standardizing the cryptographic application and management of passwords”, wrote Dovey Wan in October.

The Chinese authorities will strictly regulate key passwords and intend to support companies whose activities are related to commercial passwords.

“To prevent the possibility of data corruption, it is necessary to protect them with a password. The development of the blockchain cannot occur separately from the progress of cryptography technology, ”the publication says.

In December, it became known that the People’s Bank of China will test its digital currency in Shenzhen with the participation of large banks and companies that play an important role in the country’s economy, including China Telecom. When the official launch of the Chinese national digital currency, the largest among its kind, will take place, the department does not report.

Author: Marko Vidrih

Featured image credit: Pixabay