Is it legal for us to buy and sell digital currency
According to the announcement on preventing the financing risk of token issuance, there is no approved digital currency trading platform in China
on September 4, 2017, the central bank and other seven ministries and commissions jointly issued the "notice on preventing the financing risk of token issuance", which pointed out that any so-called token financing trading platform shall not engage in the exchange business between legal tender and token and "virtual currency", and shall not buy or sell tokens or "virtual currency" as a central counter party, It is not allowed to provide pricing, information intermediary and other services for token or "virtual currency"
on November 13, 2019, the Beijing Municipal Bureau of Local Financial Supervision issued the "risk tips on unauthorized business activities of branches of trading places" which pointed out: "if there are branches of foreign trading places (mainly financial assets exchange) carrying out business activities in Beijing, it is illegal business activities."
extended data
digital currency may breed many illegal behaviors, such as exchange or one of the fields where illegal behaviors occur. The exchange may manipulate the stability of digital currency value, but the stability of currency value is closely related to the risk of financial system. If the fluctuation of currency value is manipulated artificially, it may bring bad capital flow and affect the security of national financial system
from the perspective of financial stability, strengthening the supervision of exchanges is concive to maintaining the stability of financial order. Due to a large amount of capital flowing into the exchange, under the influence of businessmen pursuing profits, it is likely to cause the behavior of ICO in the currency circle, resulting in the lack of necessary support for the technology research and development of the chain circle. In order to regulate the market, it is necessary for the relevant departments to strengthen the supervision of the exchange
according to the announcement on preventing the financing risks of token issuance jointly issued by the central bank and other seven ministries and commissions, the announcement points out that any so-called token financing trading platform shall not engage in the exchange business between legal tender and token and "virtual currency", and shall not buy or sell tokens or "virtual currency" as a central counter party, It is not allowed to provide pricing, information intermediary and other services for token or "virtual currency"
the announcement points out that token issuance financing refers to the so-called "virtual currency" raised from investors through the illegal sale and circulation of tokens. In essence, it is an unauthorized illegal public financing behavior, suspected of illegal sale of token bills, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal criminal activities<
extended information:
the central bank said that the so-called "digital currency" in the market is not legal digital currency:
the central bank's gold and silver Bureau issued a "risk warning on issuing or promoting digital currency in the name of the people's Bank of China" on its official website, saying that recently, indivial enterprises falsely used the name of the central bank and labeled relevant digital procts as "authorized issuance of the people's Bank of China", Or they falsely claim that the central bank's digital currency promotion team is trying to deceive the public and make huge profits
the central bank said that the central bank has not issued legal digital currency, nor authorized any institutions and enterprises to issue legal digital currency, and there is no promotion team. At present, the so-called "digital currency" in the market is not legal digital currency. The central bank also suggested that the so-called "digital currency" launched by some institutions and enterprises and the so-called promotion of the central bank's issuance of digital currency may involve pyramid selling and fraud
in fact, virtual currencies such as bitcoin and lightcoin are representatives of the so-called digital currency. The central bank said in 2016 that it was studying China's legal digital currency. Yao Qian, director of the digital currency Research Institute of the people's Bank of China, previously told the media that the prototype scheme for the central bank to issue legal digital currency has completed two rounds of revision, and is expected to be tested in relatively closed application scenarios such as the bill market in the future, but there is no clear timetable for its launch
reference source: Xinhuanet - has anyone issued digital currency in the name of the central bank
source of reference: China Securities Regulatory Commission - Announcement on preventing financing risks of token issuance
the United States is a federal country, and each state has different attitudes towards virtual currency. Enterprises in New York State need to apply for a license to carry out virtual currency related business. California state recognizes the legality of virtual currency, but needs to carry out legal registration. Fuyuan coin is the legal registration in California.