Bitcoin gains legal status in India

1. bitcoin is a kind of P2P digital code. Bitcoin does not rely on specific currency institutions to issue. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses a distributed database composed of many nodes in the whole P2P network to confirm and record all transactions. The decentralized characteristics and algorithms of P2P can ensure that it is impossible to artificially manipulate the value of bitcoin by mass manufacturing
bitcoin lacks stability, so it doesn't have "inherent value", it's just a virtual proct. If we recognize its legitimacy, it will have a significant adverse impact on the banks of all countries, and even can replace the currencies of all countries. Finally, a few people will manipulate the world's monetary system, which is a very dangerous existence. It's not money. Whether it's legal or not depends entirely on whether a country recognizes it as legal or not< At present, the United States, China and South Korea all think it is not a currency. Among the big countries, bitcoin is only recognized as the "unit of account" by the German Ministry of finance, but it is only a unit of account, which does not mean that it is mainly a currency.

2. Germany
at the end of June 2013, after the German parliament decided that bitcoin would be tax-free if it was held for more than one year, bitcoin was recognized as a "unit of account" by the German Ministry of finance, which means that bitcoin has been regarded as a legal currency in Germany and can be used to pay taxes and engage in trade activities< In August 2013, judge Amos mazant of Texas District Court ruled in a case of bitcoin virtual hedge fund that bitcoin is a kind of currency and should be included in the scope of financial regulation
legal status
bitcoin can still be considered as legal at present. In the world, bitcoin can be regarded as a virtual commodity and protected by law; If bitcoin cannot be officially recognized as a kind of currency by law, it may bring inconvenience to the businesses and indivials who accept bitcoin in tax declaration, because the businesses who accept bitcoin will be regarded as barter transactions, and such transactions are more troublesome than ordinary transactions in tax declaration
at the same time, bitcoin, as a commodity highly similar to currency, needs to meet the demand of anti money laundering. Bitcoin needs to be included in the personal property declaration, banking anti money laundering system, anti insider trading, anti market manipulation and other systems in terms of transaction and possession. Bitcoin exchanges and storage institutions may also need government supervision and licensing. Some fast-growing bitcoin exchanges and payment service providers are actively exploring cooperation with regulatory agencies to bring bitcoin payment into the regulatory framework of anti money laundering and anti-terrorism financing by applying for licenses and actively communicating with regulatory authorities
in Europe, the European Central Bank published a report on "virtual currency architecture", and the French bitcoin trading platform obtained the PSP qualification. On December 6, 2012, the central bank wrote in the report: "this report is the first attempt to provide a basis for discussing the virtual currency system. While these systems may play an active role in financial innovation and in providing consumers with alternative means of payment, they also clearly create risks. " "Because of the small size of virtual currency systems, these risks do not affect anyone other than the users of these systems," the report added The report reviews the history of bitcoin and reviews its basic features, including currency and technical operation.

3.

It's not against the law to do bitcoin business, but don't use bitcoin to do illegal things

in China, the regulations on the administration of RMB prohibit the proction and sale of token tickets. Because there is no clear judicial interpretation of the definition of token ticket, if bitcoin is included in the "token ticket", the legal prospect of bitcoin in China will face uncertainty

the notice of the Ministry of culture and the Ministry of Commerce on strengthening the management of virtual currency of online games (Wen Shi Fa [2009] No. 20) on June 4, 2009 stated that the application scope of virtual currency of online games was defined for the first time, and the distinction between the current virtual currency of online games and the virtual props in the game was made; At the same time, the notice said that the "notice" stipulates that enterprises engaged in related services must be approved before they can operate

in China, some Taobao stores also began to accept the use of bitcoin, and the number of businesses will graally increase

in October 2013, the first bitcoin quarterly, one bit, was released

on October 15, 2013, the network accelerator service of the network announced its support for bitcoin

on October 26, 2013, btcmini reported that GBL was hacked

on October 31, 2013, Lei Teng, a famous Internet lawyer, proposed the event of "filing a case to investigate the closure of GBL bitcoin trading platform as soon as possible", analyzed the "value function" and "use function" of bitcoin, and bitcoin should be governed by relevant laws

on December 5, 2013, notice of the Ministry of instry and information technology of the people's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission on preventing bitcoin risk: bitcoin is a specific virtual commodity

as a commodity trading behavior on the Internet, ordinary people have the freedom to participate in bitcoin trading at their own risk

on September 4, 2017, announcement of the people's Bank of China Central Network Information Office, Ministry of instry and information technology, State Administration for Instry and commerce, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission on preventing the risk of token issuance financing: it is prohibited to engage in token issuance financing activities (ICO)

the trading platform shall not engage in the exchange business between legal tender and token, or virtual currency, or buy or sell token or virtual currency as a central counter party, or provide pricing, information intermediary and other services for token or virtual currency

on November 2, 2018, the people's Bank of China released the 12th topic of China financial stability report 2018, which talked about "encrypted assets"

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extended information:

currency transaction

purchase method

< P > users can buy bitcoin, and at the same time, they can use computers to "mine" bitcoin according to algorithms. When users "mine" bitcoin, they need to search for 64 bit numbers by computer

and then, by repeatedly solving mysteries, compete with other gold miners to provide the required numbers for the bitcoin network. If the user's computer successfully creates a set of numbers, it will get 25 bitcoins

e to the decentralized programming of bitcoin system, only 25 bitcoins can be obtained every 10 minutes, and by 2140, the upper limit of bitcoins in circulation will reach 21 million. In other words, bitcoin system is able to achieve self-sufficiency, resist inflation through coding, and prevent others from destroying these codes

source of reference: network bitcoin

4. In a sense, the outbreak of internet currency represented by bitcoin and other digital currencies is more subversive than any other form of Internet finance. On August 19, 2013, the German government officially recognized the legal "currency" status of bitcoin, which can be used for tax payment and other legal purposes. Germany has become the first country in the world to recognize bitcoin. This means that bitcoin has begun to "wash white" graally, from the Geek's plaything to the public's attention. Perhaps, it can give birth to a real Internet financial empire.

6. 1. At present, the concept of bitcoin is too advanced to be popular as the mainstream currency in the world. This is e to the political and economic factors of various countries
2. For the time being, the world's major powers will not declare bitcoin legalization within 20 years, because the rules for the issuance and generation of bitcoin are not in the hands of national willers, but rather operational rules. It's its genes
3. Many people firmly believe that bitcoin is limited. Maybe one day they will find that bitcoin is not limited. It's just that capital speculation needs a concept and a means.

7. The circulation of bitcoin will lead to a series of illegal acts, which is not concive to maintaining the stability of the financial market. The Reserve Bank of India (RBI) will not legalize any form of bitcoin.

8. ETF is the abbreviation of exchange traded funds. Its Chinese name is "exchange traded fund". It is a kind of open-end fund which is listed and traded on the exchange and has variable fund shares. ETF is a special type of index fund, which mainly includes stock ETF, Bond ETF, commodity ETF, currency ETF and so on. Bitcoin ETF, like bitcoin futures, is also a financial investment proct. Compared with direct investment in bitcoin futures, bitcoin ETF can not bring more benefits to investors, but bitcoin ETF can provide investors with a more secure and convenient way of trading, which can attract more investors and funds. However, the approval conditions of ETF are stricter than futures. In 2017, the securities and Exchange Commission (SEC) repeatedly rejected the listing applications of bitcoin ETF from several institutions.