The South China Morning Post reported that the draft rules were open for comment until 2 November, but there was no indication of when they would take effect.
Beijing has not hesitated to impose restrictions on technologies that it feels will lead to events that could affect society in an adverse way as it sees them.
A ban on cryptocurrency exchanges was put in place last year and the government also prohibited any initial coin offerings. Chinese businesses have got around this ban by shifting their servers to foreign countries.
Cryptocurrencies can be held in China, and bought and sold, but the government has said clearly that any use of blockchain technology must benefit the real economy.
In August, China's Internet watchdog shut down several accounts on WeChat which were focused on blockchain and cryptocurrency news.
The SCMP report said the latest rules were published in the wake of an open letter being published on the ethereum blockchain by an activist, about the alleged cover-up of sexual harassment at a well-known university more than 20 years ago.
The letter was attached to an ethereum transfer to the poster and was visible to all users of the blockchain.
The report said the rules had not addressed the fact that data on a blockchain is not changeable and therefore runs counter to Chinese laws about user data.
It quoted Beijing-based lawyer Xu Kai as saying the new rules did not enforce the rights of users on blockchain platforms.