Government regulation of bitcoin
bitcoin trading is a kind of commodity trading on the Internet. Ordinary people have the freedom to participate in it at their own risk
There is no law in China to ban bitcoin, so it is not illegal to mine and earn bitcoin
it is not illegal to buy bitcoin in China. In 2013, five ministries and commissions jointly issued the bitcoin risk notice, which states that although bitcoin does not belong to legal tender and is not legally compulsory, people can freely participate in bitcoin trading activities when they voluntarily undertake risks
"notice" clearly defines the nature of bitcoin, and holds that bitcoin is not issued by the monetary authority, has no monetary attributes such as legal compensation and mandatory, and is not a real currency. In terms of nature, bitcoin is a specific virtual commodity, which does not have the same legal status as currency and cannot and should not be used as currency in the market
however, as a kind of commodity trading on the Internet, ordinary people have the freedom to participate in bitcoin trading at their own risk
the notice requires that at this stage, financial institutions and Payment institutions shall not price procts or services with bitcoin, buy or sell bitcoin as a central counterparties, underwrite insurance business related to bitcoin or include bitcoin in the scope of insurance liability, and provide other bitcoin related services to customers directly or indirectly, Including: providing bitcoin registration, trading, clearing, settlement and other services for customers; Accept bitcoin or use bitcoin as a payment and settlement tool; Carry out bitcoin and RMB and foreign currency exchange services; Carry out bitcoin storage, custody, mortgage and other services; Issuing financial procts related to bitcoin; Take bitcoin as the investment target of trust, fund, etc
in order to avoid over hype of virtual commodities such as bitcoin in the name of "virtual currency" and damage the public interest and the legal tender status of RMB, the circular requires financial institutions and Payment institutions to correctly use the concept of currency in their daily work, pay attention to strengthening the ecation of the public's knowledge of currency, and correctly understand the concept of currency The concept of correctly treating virtual commodity and virtual currency, rational investment, reasonable control of investment risk, and maintenance of their own property security should be included in the content of financial knowledge popularization activities, so as to guide the public to establish a correct concept of currency and investment
source of reference: People's website bitcoin network virtual currency
however, it has not been fully and effectively regulated at present (as of March 6, 2019)
if we understand bitcoin as a kind of "currency", then it is equivalent to US dollars leaving the United States. Usually, after the US dollar leaves the United States, banks in other countries will help manage it. However, it is impossible to count the scattered us dollars that are neither in the United States nor in the hands of banks and other financial institutions. For example, in some areas of Africa where there are no banks, the US dollar is used
these scattered us dollars are equivalent to bitcoin
how to regulate these scattered us dollars
generally, in addition to controlling the issuance of US dollars, US dollar regulation also controls the circulation and usage ports. The Federal Reserve controls the number of new currencies issued each year according to the flow and damage of dollars abroad. At the same time, we should supervise the inflow and outflow of US dollars, so as to keep us dollars in an environment that can be roughly traced, so as to facilitate the issuers to count the total amount, so as to avoid excessive inflation or deflation
in fact, these scattered us dollars exist in some deregulated environments. Although they are out of control, they will not affect the overall economic situation
If anyone wants to influence the international economy through these scattered us dollars, then it must enter the existing regulatory system. In this way, these scattered dollars are regulated
for bitcoin, we can also learn from these forms of regulation
first of all, from the point of view of the issuing end, although the total number of bitcoin is now 21 million, it is also "set before" and cannot be changed
recently, it has been mentioned that the 21 million bitcoin limit should be abolished, which means that the issue of bitcoin is not stable. Therefore, it is necessary to control the issuance of bitcoin from the development end
you need to get inside the development side and become a core developer
Second, monitoring from the circulation link. In fact, this is the most difficult monitoring at present, because the blockchain is anonymous, the user is anonymous, and the receiver is anonymous
even though we can trace the circulation path of bitcoin by technical means (for example, we can know that a transaction is sent from a small house in the United States to a commercial building in Germany), it is only a drop in the bucket for tens of millions of users in the whole environment. How to trace and manage the overall transaction data is a huge problem
you can't know from the transaction data whether the user is engaged in illegal transactions
what should we do? Regulators have come up with a way to bind personal identity information to the user's real name, your exchange account number and bitcoin wallet address. But this is also a temporary solution, because it can only monitor the use of bitcoin in specific situations. An indivial can use multiple bitcoin wallet addresses. You don't know when he will apply for a new one
in terms of circulation, there is also a monitoring system to control the exchange channel between bitcoin and local legal currency. Banks in some regions do not provide financial services for users who exchange bitcoin for legal currency, and some countries and regions prohibit financial institutions from providing bitcoin and local legal currency exchange services
if users secretly exchange huge amounts of bitcoin, some clues can be found through the bank transfer records, so as to crack down on illegal acts in time. As for those who make little trouble, let him go
thirdly, restrict the use. This is relatively easy to achieve. For example, relevant laws have been issued to prohibit the use of bitcoin transactions. Although it's impossible to ban it completely, it's better than letting it run wild All over the world, it seems that what is forbidden is not completely forbidden
for example, before using bitcoin in public, you must use your real name, and you have to pay taxes to hold or use bitcoin
of course, it's OK for users not to do so, so it's better to use its assets in the dark
having said so much, now you know that bitcoin can be regulated, but it's not so well managed. Many measures have been taken, and it seems that they are not effectively regulated. Under what circumstances can bitcoin be effectively regulated? Users consciously report their holdings of bitcoin to the regulatory authorities. The regulatory authorities add some development functions to the bitcoin to achieve supervision, or they don't need to use it, so it doesn't matter at all
in fact, it can't be controlled so strictly, as long as it can't be controlled in the range of big waves. After all, there is light and dark, and there may be no gray space at all
new technology will surely have an advantage when it comes to living now.
Recently, German Finance Minister Peter altemir and French finance minister Bruno lemer jointly held a press conference in Paris, saying that they will jointly promote the global supervision of the bitcoin at the G20 summit in Argentina this year, which will warn that the world's most popular cryptocurrency is being used by illegal groups
the regulation of bitcoin is likely to become a new topic of the G20 summit this year. Lemer has repeatedly said that he will propose to discuss the issue of bitcoin at the G20 summit. As for speculative risk, member countries need to discuss the regulation of bitcoin management together. US Treasury Secretary mu nuqin also said recently that he will work with the G20 to prevent cryptocurrencies such as bitcoin from becoming the digital equivalent of anonymous Swiss bank accounts
Experts suggest that the G20 and some international financial institutions should speed up the formulation of relevant principles and guidelines to provide cases and follow-up for countries to establish coordinated regulatory policies. At the same time, we should achieve global coordination in supervision to jointly crack down on illegal cryptocurrency transactions and crimesOn the afternoon of December 5, 2013, the people's Bank of China issued the notice on preventing bitcoin risks. In the notice, the people's Bank of China said that bitcoin is not a currency, but a virtual commodity. Financial institutions and Payment institutions are not allowed to carry out business related to bitcoin. As soon as the notice was issued, bitcoin fell sharply on China's trading platform, and it has dropped by 60% in three weeks. This is the beginning of bitcoin being restricted by the Central Bank of China. In mid March 2014, the people's Bank of China issued a notice on further strengthening bitcoin risk prevention to all branches of the people's Bank of China, which required all banks and third-party payment institutions to close the trading accounts of 15 domestic bitcoin platforms before April 15. This shows that it is illegal for financial institutions in China to open trading accounts for bitcoin website platforms. Except for cash transactions, bitcoin investors can not conct bank transfer and third-party payment for transactions in China< br />
bitcoin is a decentralized and decentralized monetary system. From the government's point of view, it is not whether it should or not, but it must carry out supervision, and find out the beneficial part in its development process for traction
whether the private economy's acceptance of bitcoin is enough to form an irreversible trend depends on the game between the government and indivials in this process
if the existing monetary system brings more benefits to most nodes in the economic chain or to you, you will not choose the trading scenario of bitcoin from a personal point of view
for example, why do you use bitcoin: is it more convenient to pay? Is trading safer? Is it cheaper to buy a computer? Or for speculation
if most people who use bitcoin are speculative, it is morally reasonable for bitcoin to be regulated in the process of normal social and economic development.
the media's hype about bitcoin has made more than one newspaper sneer: "at present, journalists recognize bitcoin more than investors as a reliable way to store wealth." Government departments around the world are also paying attention to bitcoin. Although the Chinese and American governments have not banned it, they do not encourage people to participate in it. Here we focus on two questions: why is bitcoin so important? Why doesn't the government like bitcoin
bitcoin is a virtual payment system, which is not controlled or governed by any central government or private institutions. Unlike Alipay or Paypal, the system has its own monetary unit (bitcoin) instead of Renminbi, US dollars or other legal tender. Strictly speaking, bitcoin has no physical form. Instead, it trades over the Internet, and users store their bitcoin in their wallets. The bank account books record the depositors' deposits and withdrawals. The public can not see these records, but it is legal for the government to ask to review these records. The account book of bitcoin is called "block chain". In theory, it is a public document (anyone can download a ), but the participants of bitcoin system can easily hide their identity, because bitcoin is sent to the address randomly generated by electronic money package, which is composed of letters and numbers. In other words, I can provide a new address for each transaction. So even if people can figure out how much bitcoin they can get, they won't know if I have bitcoin
Where can I get bitcoin? One way is through "mining.". This method is by no means easy, and the computing power required for "mining" is now more than most people can afford (according to the design of bitcoin system, it will be increasingly difficult to find bitcoin). I know it's too simple to say that. The fact is that bitcoin's revenue and expenditure books are jointly maintained by "miners" all over the world. Most of the "mining" groups (more than 60000 users) that "miners" participate in spend a lot of time and power, and some of them can get bitcoin. For the majority of non professionals, it is much easier to buy bitcoin online on the bitcoin "exchange" with regular currency. Until recently, Japan's Mt. GOx was the world's largest bitcoin "exchange.". In China, bitcoin "exchange" BTC China has the longest history
I'm not surprised that China has quickly become a major bitcoin market because bitcoin has performed so well as a private trading channel. It is estimated that in 2013, the trading volume of bitcoin in China (including Hong Kong) accounted for more than half of the global trading volume, and more than 100000 bitcoins were traded in "bitcoin China" every day. People's interest in bitcoin has increased greatly, especially in China, which has led to a significant increase in the value of bitcoin, from about $0.08 in June 2010 to $1124.76 in November 2013. This led to reports that a Norwegian man bought 5000 bitcoins for $26.60 in 2009 and sold them for $886000 in 2013
unfortunately, those who bought at the peak have found that their bitcoin has almost halved in value - the current price of bitcoin is less than $600. What's wrong
for some investors, it is a problem that bitcoin has no physical form. For example, the Norwegian man mentioned above forgot his e-wallet password and had to take great pains to delete and rebuild it. Mt. GOx is much larger. It stopped trading on February 25, 2014, and then filed for bankruptcy protection in Japan and the United States because it lost about 550000 bitcoins, which were worth $473 million at that time, accounting for 7% of all bitcoins in circulation. Attorneys for Mt. GOx said in court that the reason for the loss of the bitcoin may be that "there is an algorithm defect in the bitcoin software, and someone has used this defect to invade the bitcoin network.". Investors usually stay away from such risks that they cannot understand
however, the bigger problem with bitcoin is that the Chinese and US governments are not friendly to bitcoin. In December 2013, the people's Bank of China banned financial institutions from engaging in bitcoin trading, saying that bitcoin is not a "real" currency. The bank made it clear that investors were free to participate in bitcoin trading, but at their own risk. Analysts pointed out that the Chinese government is worried that bitcoin trading by financial institutions will threaten the government's control over the financial instry, especially in terms of money supply and cross-border money flows. Before too many parts of the economy become "invisible" and untraceable, the Chinese government must act< Almost at the same time, U.S. Department of Homeland Security agents detained more than $5.1 million of bitcoin in Mt. GOx's account. They said the money came from a criminal network called silk road. In January 2014, a director of MT GOx was charged with money laundering. However, the U.S. government did not declare bitcoin illegal. Instead, after explaining the tax law, it used an unconventional means to punish users of bitcoin. In March 2014, for example, the Internal Revenue Service announced that bitcoin was an asset, not a currency. This has a significant impact. For example, if an American taxpayer buys $500 of bitcoin and then uses them to buy $1000 of goods e to the rising market price of bitcoin, he has to pay tax for his income. If the taxpayer purchases foreign currency, he does not need to pay tax when the foreign currency appreciates against the US dollar. In addition, bitcoin miners must declare the value of bitcoins by the date they were discovered, not by the time they were spent. In other words, bitcoin related taxes need to be paid immediately, even if the "miner" intends to keep these bitcoins for a few years. Recently, the U.S. government announced that it would transfer the bitcoin detained from "Silk Road", but asked the buyer to show his identity, which would inevitably weaken people's desire to buy and rece the transfer price of these bitcoins
since December 2013, China's official attitude towards bitcoin has not changed. However, the Chinese government does not allow domestic banks to do business with bitcoin "exchanges", especially in transferring RMB deposits from personal accounts to "bitcoin China". On April 28, 2014, bitcoin China said on its microblog that its user account had voluntarily stopped accepting RMB deposits. Since then, China has not encouraged bitcoin "exchanges" to allow users to withdraw Renminbi from their accounts. The future of bitcoin in China is not good, only Hong Kong may be an exception; At the same time, there are bitcoin ATMs in Hong Kong
but as far as the investment risk of bitcoin is concerned, the government's view may be reasonable. Recently, it has been reported that a "mining" group has controlled more than half of the bitcoin computing power, which may enable the group to veto bitcoin transactions verified by other "miners", or reuse the same batch of bitcoin without fear of being questioned. For most people, these problems can be too complex to solve. However, in mid June, Peter Chen, the main developer and advocate of bitcoin, made a breakthrough; Peter Todd, who sold half of his bitcoin, said: "I've learned that the factors that make bitcoin motivating are flawed, for a number of reasons. To say the least, even if only a few of the main reasons are taken into account, it will make people worried when a mining group controls 50% of its computing power. "
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2. Your bitcoin transaction is legal and not restricted or prohibited by law
3. The profits you earn are recognized by law and can be distributed and owned by you
if the above conditions are met, you should be able to obtain legal protection. If the case is solved in the future, you should be able to claim civil compensation as the victim, but there is no guarantee of full compensation
in general, if the public security organ files a case for investigation, the case will still be held accountable for how long it takes; If the public security organ does not file a case and may be sentenced to fixed-term imprisonment of not more than five years, it will not be investigated after five years. However, the law also stipulates that if a complaint is filed by the victim ring this period, the relevant authorities should file the case but not, it is not limited by the limitation period of prosecution. You have reported the case to the public security organ, but the case has not been filed because of public security reasons. This case should not be limited by the prosecution period according to law, and the prosecution effect will not be lost for a long time.