China’s Beijing Certificate Authority (BCA) has presented the Blockchain Security Assessment Service designated to analyze the software of firms operating in the blockchain field.
BCA is the only organization authorized by the China Certification and Accreditation Administration (CNCA) to certify firms in the financial sector. The instrument created by BCA will establish the leading technical characteristics, performance, and safety conditions of platforms whose work is based on the blockchain. Furthermore, the service will enable the analysis of transaction processing, registers, as well as audit nodes, and algorithms for encryption. With the Blockchain Security Assessment Service, auditing firms can establish whether the encryption keys used in different applications are made in China.
According to Chinese legislation, any encryption tech that is incorporated in publicly accessible apps must be made in China and listed in Beijing.
BCA highlighted that there are many thousands of firms registered with the Chinese government that claim their operations are related to blockchain technologies. There are doubts, whether many of these firms are truly working in the blockchain industry or are just using the “blockchain” classification for SEO optimizations or to catch the attention of investors. As of right now, industry standards do not separate organizations that work on distributed ledger technology from firms that produce low-quality codes.
Beijing is aware of that issue and is trying to find an effective countermeasure against it. Thus, in April, was created a committee of 15 organizations dedicated to the technical issues for creating governmental standards for blockchain and distributed ledger technology (DLT). The committee includes organizations such as the MIIT, People’s Bank of China (PBOC), Zhejiang University, Tencent, and Baidu. Moreover, in July this year, the NBK unveiled the standards that financial applications claiming to be blockchain-based must comply with.
