The new law which will go into effect on January 1, 2020 aims to regulate the use of crypto-technology by individual citizens, businesses and even the government.
The new law classifies cryptography into distinct types, they are as follows:
- Core Cryptography
- Common Cryptography
- Commercial Cryptography
Core and common cryptography will be used to protect China's confidential information, such as state secrets, which will be managed by the authorities in the subject.
Under the statute, state confidential information sent over wire or wireless communication as well as the information systems that store and dispose of this information must use core and common cryptography for their encrypted safety certification.
The law will further help the regulation of crypto-technology by making it a mandatory requirement for institutions working on cryptography to set-up "management systems" to ensure that their encryption is secure.
On the other hand, commercial cryptography is intended to protect non-confidential information and can be used by residents, legal institutions and sectors of business and finance in accordance with the laws of China.
The new law has also imposed restrictions to ensure the protection of individual rights, China's current cybersecurity laws also prohibit the use of encryption technology in any way that could endanger the citizens of the country, and such similar provisions have been included in the new law as well.
The passing of the new law is a giant step towards innovation as it enables and encourages the commercial development of the new technology which is rising in demand.
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