On December 31, 2024, the Shanghai Provisions on Promoting the Use of Blockchain to Empower the Application of Electronic Documents in Pudong New Area were officially adopted, during the 18th meeting of the Standing Committee of the 16th Shanghai People’s Congress.
These regulations, which came into effect on January 1, 2025, mark a major step in utilizing blockchain technology to modernize electronic document management in the Pudong New Area.
Shanghai Enacts Blockchain Provisions
The initiative aims to establish a reliable, secure, and innovative blockchain ecosystem that aligns with Shanghai’s vision of becoming a global leader in technology and trade.
The newly implemented regulations create a comprehensive framework for using blockchain to handle electronic documents. This includes the issuance, transfer, change, conversion, and storage of data-based documents and vouchers, with the exclusion of investment-related documents.
The overall goal is to leverage blockchain to streamline processes, improve transparency, and ensure secure document management in Pudong’s growing digital economy.
A collaboration of Government Departments
The regulations highlight the need for coordination between various government departments to ensure effective implementation. The municipal government is tasked with improving the coordination mechanisms for blockchain applications and working closely with national authorities to address major concerns.
Meanwhile, the Pudong New Area Government will focus on developing policies and initiatives that support blockchain technology, aiming to foster a robust digital ecosystem.
The municipal data department will lead the construction of blockchain infrastructure, while the Pudong New Area data department will oversee its local application, ensuring that both national and local goals are met.
Regulations Around Blockchain
A key focus of the regulations is the protection of legal rights for individuals and organizations involved in blockchain-enabled electronic document applications. The regulations emphasize the importance of legal compliance in the creation, transfer, and storage of documents, while also ensuring the integrity and security of the data.
These measures are designed to build trust and reliability in the use of blockchain for document management across various industries.
Also Read: Hashkey Chairman Bets On China’s Crypto Market Restart Within Two Years Amid Trump’s Policies
The regulations also lay out several critical provisions for the development of blockchain infrastructure. They encourage the use of open-source blockchain technology that supports data privacy and trusted sharing, while also ensuring compliance with national standards for cybersecurity and blockchain service management.
Blockchain systems are required to meet legal and functional criteria, including ensuring that electronic documents are unique, identifiable, complete, tamper-proof, and under lawful control.
Furthermore, the infrastructure must ensure that any changes to or conversions between electronic and paper documents are accurately recorded to maintain data consistency.
Need for a Digital Landscape
These new regulations are set to accelerate the digital transformation of key industries, including trade, shipping, and finance, by integrating blockchain into critical operations.
In addition, the regulations support the adoption of emerging technologies such as the digital RMB for payment and settlement processes, positioning Pudong as a leader in blockchain innovation.
With a solid legal and technical framework in place, Shanghai is setting a global benchmark for the application of blockchain in electronic document management, fostering trust, transparency, and efficiency across sectors.
Also Read: China Unveils New Forex Rules, Asks Banks To Flag Risky Crypto Trades