China's Cyberspace Administration seeks public comments on distributed digital identity mutual recognition regulation, plans to build national identity infrastructure on blockchain

On June 18, the Cyberspace Administration of China released the „Regulations on Promoting Interoperability and Mutual Recognition of Distributed Digital Identities (Draft for Comments)“, seeking public feedback until July 18. The draft proposes building a national-level distributed digital identity (DID) system based on blockchain. Its core components include an „identity chain“ operated by entities authorized by the cyberspace authorities, and a „distributed digital identity public service“ built on the identity chain to provide registration, verification, credential issuance, and authorization services. Identities are categorized into four types: individuals, government agencies and institutions, legal persons and other organizations, and industrial equipment and items. For domestic individual users, their identity is verified by the public security department and a credential is issued through the identity chain. Enterprises are verified by the unified social credit code management authority. Residents of Hong Kong, Macao, and Taiwan, as well as foreigners, may apply for an overseas实名 identity credential using valid documents. Users can selectively disclose information using verifiable credentials or verifiable presentations. The private key is held by the user independently. Platforms must follow the principle of minimal data collection, and important data and personal information must be stored domestically.

The regulations also propose multiple cross-sector interoperability goals: encouraging mutual recognition between digital yuan identities and distributed digital identities, and between distributed identities and tax network trusted identities, with application scenarios in transportation ticketing, customs, and public resource bidding; encouraging domestic distributed digital identity service providers to achieve cross-border identity mutual recognition with foreign institutions under secure and可控 conditions; all participants in the identity chain must connect to a unified public service and file with the cyberspace authorities. The regulation is jointly drafted by the Cyberspace Administration of China, the Ministry of Public Security, the Ministry of Industry and Information Technology, the State Cryptography Administration, the National Data Administration, and other ministries, aiming to support the construction of national-level blockchain network basic common service capabilities and to promote the unified circulation of identity credentials across platforms and industries.

Cyberspace Administration of China