The Cyberspace Administration of China (CAC) has taken another step in regulating data and information by releasing draft rules requiring service providers with data on more than one million users to undergo at least one compliance audit annually by an agency appointed by the regulator. The appointed compliance agency must also evaluate services that own the data of more than 100,000 users or those with sensitive data of more than 10,000 users. For services that hold data of fewer than one million users, they must undergo a personal information compliance check every two years.
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