According to coindesk.com, the motivation for the new law is to "encourage research and development on commercial cryptography technologies, while building up an inclusive standardized regulatory system for the market." Note the word "standardized".

But couldn't this new law potentially backfire on China's need for standardization and control as new technologies develop on blockchain?

For example, Blockstack is a U.S. company that works with blockchain (I am not affiliated with them in any way). As I understand it, Blockstack platform has the potential of decentralizing the web and providing an environment in which all information created by users is stored in their own devices, and not in some centralized, government server. I am sure technologies such as that in Blockstack can be developed in China too. If so, wouldn't that potentially undermine China's growing national surveillance mandate?

Is this why Bitcoin shot up 24% in the last 24 hours?

Marc Z. just become consultant for Mr. Xi