Shanghai is working on rules on the management of drones to prevent them being used for illegal activities or posing security threats, the local model aircraft association said at the weekend.

Current rules only cover unmanned aerial vehicles — including drones and model aircraft — weighing more than 7 kilograms.

However, these regulations do not cover many drones, which can weigh less than 3 kilograms.

Concerns include drones spying on individuals or business rivals, straying too close to sensitive areas or creating hazards.

Under the new rules, expected to be introduced this year, a license would be required for owners of drones that fly above 120 meters.

The rules will also specify where drones are limited or banned, with a certificate system allowing drone owners to fly their craft at different heights and places, said the Model Aeronautics and Vehicle Association of Shanghai.

The association has teamed up with city police to draft the rules.

Flying a drone in crowded areas, such as Lujiazui or the Bund, would require an intermediate level certificate and approval from police, said an association official. Flights would be monitored by police and city management.

In addition to existing no-fly areas for drones and model aircraft around airports and some military and government sites, other places where bans or limits will apply are being drawn up.

Association president Gu Cheng said there are also plans for each drone to have a chip containing details on its owner.

Anyone breaking the rules may face fines or 5 to 10-day periods of detention, under the draft.

While drones have become increasingly popular, there have been problems along the way.

On March 20, a drone became stuck on a 10,000-volt power line in Songjiang District.

While it was taken down safely, electricity workers said it could have caused a huge power outage.

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