How to do well in legal compliance when starting a blockchain information media business?

Maximizing Legal Compliance for a Successful Blockchain Information Media Business Launch

Source: Liu Honglin Lawyer

Background

Blockchain technology is reshaping the boundaries of the tech field. It not only leads the technological revolution but also opens a new chapter in information dissemination. As this technology continues to develop, blockchain media and information platforms have become hotspots in this field. These platforms are not only hubs of information but also battlegrounds for institutions that are eager to establish their presence in the blockchain ecosystem.

Entrepreneurs exploring this niche market must confront a series of challenges, such as copyright protection, user data privacy, regulatory compliance, and investment information transparency. For example, when it comes to the latest regulatory policies regarding cryptocurrencies, how to ensure the authenticity of information while avoiding legal pitfalls becomes a crucial issue. This article, written by Lawyer Honglin, provides insights into the compliance requirements when conducting blockchain information services in China.

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0 1 Copyright and Intellectual Property Protection

In the digital era, content is king, and copyright and intellectual property protection are the shields of content creators. As platforms for information dissemination, blockchain news websites face significant challenges in copyright protection.

For example, websites may reproduce or quote market analysis reports, technical articles, images, and videos from third parties. In such cases, it is essential to ensure that the content used has been authorized by the original author or copyright owner. Additionally, indicating the source and author of the content is an important demonstration of respect for copyright. For instance, even if a website has the right to reproduce an article, it should clearly indicate the original source link and author’s name at the end of the article as a sign of respect.

Intellectual property protection is not only about avoiding infringement but also involves protecting the website’s own original content. For example, a news website may produce exclusive blockchain technology video tutorials or in-depth analysis reports. These original contents should also be protected by copyright law. Websites can protect their intellectual property rights through copyright registration, watermarking, and other methods to prevent infringement.

02 User Privacy Protection and Data Security

In the context of big data and artificial intelligence, the protection of user data is particularly important. For blockchain news websites, handling user personal information in compliance with the law is their social responsibility and legal obligation.

For example, when users register, subscribe to news, or participate in online discussions, websites collect user’s personal information such as name and email address. According to the “Personal Information Protection Law,” websites must clearly state the purpose of collecting and using this information and can only process it with the user’s consent. Data security is another critical aspect of user privacy protection. For instance, websites need to use encryption technology to protect user data stored on servers to prevent hacker attacks and data breaches. Additionally, websites need to regularly review and upgrade their security systems to address the ever-growing threats to online security. In case of data breaches or security incidents, websites need to have a clear emergency response plan and promptly notify affected users and relevant regulatory agencies.

03 Compliance and Regulatory Compliance

Compliance and regulation are crucial for blockchain news websites. The content of the website must not involve illegal financial activities, such as cryptocurrency trading and initial coin offerings (ICOs), which are currently heavily restricted in China. Even when discussing these topics, it should be from a technical or academic perspective, avoiding any promotion or facilitation of illegal trading activities. Additionally, when providing financial investment advice, the website must also adhere to relevant financial regulations, ensuring that it does not involve illegal financial activities or misleading financial advertising.

In addition to cryptocurrencies, other regulatory areas require special attention. For example, China’s “Cybersecurity Law” imposes requirements on network operators, including but not limited to the protection of user information, cybersecurity measures, and the establishment of data centers within China’s territory. As a blockchain news website, it must ensure that all technologies and operations comply with these legal requirements.

04 Risk Warning and Investor Protection

The virtual currency market is highly uncertain and volatile, and clear risk warnings are essential for investor protection. When providing any investment-related information or analysis, the website must clearly indicate the risks involved.

For example, if the website publishes an analysis of the future potential of a certain cryptocurrency, it should clearly state the market’s uncertainty, the possibility of price fluctuations, and the potential losses that investments may face.

Furthermore, investor protection is not just about providing risk warnings. Blockchain news websites should also ensure that the information provided is based on sufficient and accurate market analysis and data research. This means that the website needs to have certain research and analysis capabilities to ensure the accuracy and timeliness of information. At the same time, to avoid conflicts of interest, the website needs to disclose any affiliations or vested interests that may affect the objectivity of its content.

05 Whether to block users’ IP in mainland China

Many friends who are engaged in information-related startups often ask Attorney Honglin this question during communication. The answer to this question cannot be generalized. Whether to block users’ IP in mainland China depends on various factors, including the specific content of the website, business model, and the laws and regulations that the website wishes to comply with.

Considering China’s strict regulation of certain blockchain applications, especially cryptocurrency trading and related activities, blocking users’ IP in mainland China may be a cautious choice if the website’s content involves these aspects. Doing so can reduce potential legal risks that may arise from violating local laws and regulations.

However, if the website’s content mainly focuses on education about blockchain technology, information sharing, and non-transaction-related discussions, then blocking users’ IP in mainland China may not be necessary. In this case, the focus should be on ensuring that the website’s content complies with China’s internet and information dissemination laws and regulations.

06 Lawyer Man Kun’s Summary for You

In the niche entrepreneurial field of blockchain news websites, the legal challenges and risks faced cover everything from technical details to content management, user information protection, legal compliance, and even investor rights. Addressing these legal challenges and risks comprehensively is not only necessary for compliance, but also crucial for sustained development and gaining user trust in the industry.

In terms of copyright and intellectual property protection, the primary task for website operators is to ensure the legality and innovation of the content they publish. This not only respects the intellectual achievements of creators, but also ensures the protection of their own intellectual property rights.

When handling user data, websites must strictly follow relevant legal provisions to ensure the security and privacy of personal information, and provide a secure and reliable online environment.

In the aspect of compliant operation, considering the continuous evolution of regulatory policies in the blockchain field, entrepreneurs need to continuously monitor the changes in regulatory policies and ensure that all business activities are conducted within the limits allowed by law.

When providing investment-related information, websites have a responsibility to provide comprehensive and accurate market analysis, impartially showcase information from all parties, and clearly indicate potential investment risks, all in order to safeguard the interests of investors.

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