Virtual currency suspected to be illegal

1. There are two reasons for the prohibition of virtual currency trading by the state:
1. The price fluctuates violently and the consumer protection is lacking:
virtual currency is the proct of network, and the digital information flowing in the network is beyond the control of all people. The code of cyberspace is the basis of the operation of virtual currency, investors can only operate through the front-end interface, seemingly "control" the virtual currency. The operator of the virtual currency service organization may become the actual controller of the virtual currency through the control code<
2. Avoiding supervision and becoming the "accomplice" of criminal activities
virtual currency transaction is not protected by law:
virtual currency transaction is not illegal, and it is not illegal to invest in virtual currency. But how to get involved in virtual currency transactions is illegal and illegal. It may be suspected of illegal fund-raising.

2.

It is not likely that the public security organ will file a case of virtual currency transaction fraud, because the virtual currency transaction fraud generally involves a large number of people, a wide range, a small amount and strong anonymity

it is difficult for the public security organs to collect evidence and arrest, because most of the information of the Chuangshi operation team of the virtual currency scam is not public and there is no way to collect evidence. Maybe the mastermind will become a victim after being arrested

with the popularity of virtual currency, disputes related to it appear frequently. Recently, the people's Court of Futian District in Shenzhen tried a dispute caused by investment in virtual currency. The court reminded that the investment transaction of virtual currency is not protected by law, and investors should keep sober and rational

extended information:

after the judicial organ reviews the criminal cases or civil disputes, it is the beginning stage of litigation activities that the judicial organ decides to list them as litigation cases for investigation or trial. Generally, it includes criminal cases, administrative cases and civil cases

According to the criminal procere law of the people's Republic of China, there are two conditions for filing a case:

1

The criminal responsibility should be investigated according to law. If there are criminal facts, but the law stipulates that criminal responsibility should not be investigated, the case shall not be filed

under any of the following circumstances, no criminal responsibility shall be investigated and no case shall be filed; If the case has been investigated, the case shall be annulled, or no prosecution shall be instituted, or acquitted

(1) if the circumstances are obviously minor and the harm is not great, it is not considered a crime

(2) the time limit for prosecution has expired

(3) exemption from punishment by special amnesty

(4) in the case of criminal law, it is a crime to be told, but it is not told or withdrawn

(5) the defendant has died

(6) other laws and regulations provide for exemption from criminal responsibility

3.

According to the news on February 10, 2018, on September 4, 2017, seven ministries and commissions of the people's Republic of China issued the notice on preventing the financing risk of token issuance, which regulates the issuance of tokens. In the notice, the nature of all kinds of tokens and "virtual currency" is clearly defined: it is not issued by the monetary authority, and it has no monetary attributes such as legal compensation and mandatory, It does not have the same legal status as currency and cannot and should not be used as currency in the market. Nevertheless, it is undeniable that all kinds of "virtual currency" still have a certain property value and are part of the property of the holder. So, how to identify the nature of the theft of such tokens

In order to protect the legitimate rights and interests of "virtual token" holders, the author intends to discuss such issues through a relevant news report and relevant cases

stealing bitcoin

recently, a news report said that Haidian police in Beijing cracked a case of destroying computer information system. The suspect Zhong used his administrator's authority to modify the company's computer applications and steal 100 bitcoins. Before he could sell the stolen money, Zhong was arrested by the police. At present, Zhong was detained for the crime of destroying computer information system

it can be seen from the report that the police detained the perpetrator for stealing bitcoin on suspicion of damaging the computer information system. The crime of destroying the computer information system stipulated in Article 286 of the criminal law of our country refers to the act of deleting, modifying, adding or interfering with the functions of the computer information system in violation of the provisions of the state, resulting in the abnormal operation of the computer information system and serious consequences, or deleting, modifying or interfering with the data and application programs stored, processed or transmitted in the computer information system Modifying or adding operations with serious consequences, or deliberately making or spreading destructive programs such as computer viruses, which affect the normal operation of the computer system with serious consequences

In the author's opinion, this crime is one of the crimes of impairing social management order in Chapter 6 of the criminal law, that is, the legal interest protected by this crime is actually the public order of our society, not the property interests of the digital currency holders, which in fact denies the property value of digital currency, It is only protected as a data or system function in a computer system. The author thinks that there is some irrationality in this way

first of all, in the notice on the prevention of bitcoin risk issued in 2013, it is mentioned that bitcoin is not a real currency because it is not issued by the monetary authority and does not have such monetary attributes as legal compensation and compulsion. Bitcoin has four main characteristics: no centralized issuers, limited amount, no geographical restrictions and anonymity. Because it belongs to a specific virtual commodity in nature The notice also clearly mentioned that bitcoin does not have the same legal status as currency and should not be used as currency in the market. However, as a virtual commodity, the property value behind bitcoin cannot be ignored

Secondly, Article 127 of the general provisions of the civil law, which came into effect on October 1 last year, stipulates that if the law has provisions on the protection of data and network virtual property, such provisions shall prevail. Although only the protection of the network virtual property has made the principle provisions, but it can not be denied that this shows our country's attitude towards the protection of the network virtual property. Although there is no special law for the protection of data and network virtual property in China, from the perspective of the general provisions of civil law, it is predicted that there will be relevant legislation in the future

finally, from the relevant cases, we can also see the recognition of the property attribute of virtual currency such as bitcoin in China's judicial practice. In April and may 2013, Liu premeditated to set up a bitcoin trading platform, so he recruited Jin and Huang (both sentenced) to jointly set up a "bitcoin" trading platform. During this period, Liu, Huang, Jin, Jin and the defendant he, in addition to other acts of directly stealing customers' funds, also frequently cashed RMB by selling customers' bitcoins, and transferred 120 bitcoins from the website. Finally, the court convicted and punished the defendant for fraud, and the bitcoin transferred by the defendant was also included in the property loss of the victim. Therefore, from the judicial cases, we can also get the recognition of the property attributes of virtual currency such as bitcoin

based on the above reasons, the author thinks that it may be unreasonable to regulate the theft of virtual currency only as the crime of damaging computer information system. We should face up to the hidden property value and consider the application of the crime of infringing property in China's criminal law. Only in this way can we effectively protect the legitimate rights and property of digital currency holders in China

4.

It is illegal to buy and sell digital currency in China

according to the announcement on preventing the financing risk 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 currency and token and "virtual currency", and shall not buy or sell tokens or "virtual currency" as the central counterparties, 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 illegal sale and circulation of tokens. In essence, it is an unauthorized illegal public financing behavior, suspected of illegal sale of token tickets, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal and 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 monetary 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 use the name of the central bank, The relevant digital procts are labeled as "authorized issuance by the people's Bank of China", or the central bank's digital currency promotion team is falsely claimed, in an attempt to deceive the public and take the opportunity to 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

5. In the notice on preventing bitcoin risk issued by the central bank and other five ministries and commissions at the end of 2013, bitcoin is clearly defined as a special Internet commodity, and people can buy and sell freely at their own risk, denying its monetary attribute. All financial institutions are not allowed to provide bitcoin related services. Bitcoin related websites must be put on record and require users to carry out real name authentication. Zhou Xiaochuan, central bank governor, said in an interview that bitcoin is a tradable asset like a stamp

in a word, virtual currency represented by bitcoin is legal in China, but the government takes a cold attitude towards virtual currency, which is neither positive nor negative. Most of the major countries in the world also adopt a cold attitude towards virtual currency

since 2015, the popular virtual currencies are bitcoin, Laite coin, Fuyuan coin, doggy coin, reborn coin and so on

it is possible, but at present, the government has not banned it

bitcoin and other virtual currencies exist legally in China. In the 2013 bitcoin risk notice, the central bank and other five ministries and commissions clearly defined bitcoin as a special Internet commodity. People can buy and sell it freely at their own risk. Financial institutions do not have to provide bitcoin related services, denying its monetary attribute. Zhou Xiaochuan, the governor of the central bank, compares bitcoin to a tradable asset like a stamp< Most of the major countries in the world take a cold attitude towards virtual currency. There are several possibilities for countries to ban virtual currency:

1
2. The well-known weaknesses and defects of virtual currency can not be overcome in a certain period of time
3. The government can't stand the use of virtual currency in money laundering and other illegal activities

since 2013, the popular virtual currencies are bitcoin, Fuyuan coin, Laite coin, doggy coin, Ruibo coin, Yuanbao coin and so on<

Zhou Xiaochuan, governor of the central bank, said at the Boao Forum for Asia that virtual currency is not a currency approved by the central bank and can not be banned. Since digital currency is not the currency initiated and approved by the central bank, it can not be banned. Digital currency belongs to digital assets, which can be freely traded between indivials. Therefore, digital currency is not MLM, not capital disk, but a kind of financial investment

in fact, the central bank has been studying digital currency for a long time. From the perspective of historical development trend, money has always evolved with the development of technological progress and economic activities. From the early physical money, commodity money to the later credit money, it is a natural choice to adapt to the development of human commercial society. As the currency of the previous generation, paper money has low technology content. From the perspective of safety and cost, it is the general trend to be replaced by new technology and new procts. In particular, with the development of the Internet and the great changes in payment methods all over the world, the establishment of digital currency issuance and circulation system is very necessary for the construction of financial infrastructure and the promotion of economic quality, efficiency and upgrading

does China recognize virtual currency_****** In the notice on bitcoin risk prevention issued by the central bank and other five ministries and commissions at the end of 2013, bitcoin was clearly defined as a special Internet commodity. People can buy and sell bitcoin freely at their own risk, denying its monetary attribute. Financial institutions are not allowed to provide services related to bitcoin, and bitcoin related websites must be put on record, In a word, the virtual currency represented by bitcoin is legal in China, but the government takes a cold attitude towards it, Most of the major countries in the world also adopt a cold attitude towards virtual currency. Since 2015, the popular virtual currencies include bitcoin, Wright coin, Fuyuan coin, doggy coin, Ruibo coin, etc.

Why do not countries ban virtual currency; In other words, what is the connection and difference between the value represented by virtual currency and the value represented by general currency? 3. In view of the depth of the background of the problem, we need to stand higher in the starting point of the research. Currency is a problem in the category of modernity, The problem of virtual currency is the problem of postmodernism. They do not share the same basic paradigm. It is the difference of paradigm, not virtual phenomenon, that leads to the difference between them.

why does China not stop virtual currency_****** As a new thing, virtual currency has its progressive side. One of China's attitudes towards new things is that the law does not prohibit it. However, if virtual currency poses a threat to the existing financial system, the government will take action, What follows is the public...

which countries recognize the legitimacy of virtual currency_****** At present, Japan has recognized bitcoin as legal

is virtual currency recognized by the state_****** No, because it involves money laundering, easy to crash and other factors. Although bitcoin, the most famous virtual currency, can not be said to be suppressed, there are very few transactions between physical objects and virtual currency abroad, and its prospect still remains to be seen, The pure pyramid structure will not be recognized by the state.

is there any policy in China to prohibit the trading of virtual currency****** At the end of 2013, the central bank and other five ministries and commissions jointly issued a bitcoin risk notice, in which bitcoin is clearly defined as a special Internet commodity, and people can buy and sell freely at their own risk, denying its monetary attribute, In an interview with the Boao Forum, President Yang Xiaochuan compared bitcoin to a tradable asset like a stamp, and the central bank has no right to ban it. Since 2013, popular virtual currencies include bitcoin, Leyte, Fuyuan, doggy, etc Is China's virtual currency legal_****** Virtual currency can trade bitcoin, Leyte and ether on chinacoin.com.

is virtual currency illegal in China_****** Virtual currency exists legally in China, but it is illegal to engage in illegal activities by using virtual currency. The notice on preventing bitcoin risks issued by the people's Bank of China and other five ministries and commissions defines the nature of bitcoin, believing that bitcoin is not issued by the monetary authority and has no monetary attributes such as legal compensation and compulsion, Not really...

will China ban all virtual currency commercial transactions? Will virtual currency be banned_****** How to buy and sell virtual currency after China forbids virtual currency trading

how does the state treat virtual currency in 2017****** At present, there is no official recognition of the value of virtual currency in China, but only in some areas suspected of causing actual harm to society, some recognize its existence value

6. First, virtual currency, such as bitcoin, or some game and network currencies, such as QB and some game gold coins, are all personal legal property. As long as an indivial legally obtains them, they will be protected
Second, transactions prohibited by the state, especially speculation and trading of the virtual currency are prohibited in China. However, banning trading does not mean that the virtual coin itself is illegal or worthless
for example, bitcoin, which China refuses to recognize as any regional chain block currency, also forbids trading and services, does not mean that bitcoin itself has no value. In the international trading system, bitcoin is recognized in some regions, And there is a corresponding value scale
when someone steals bitcoin or swindles bitcoin, the state will still treat it as theft or fraud, and the amount needs to be approved< At present, the transaction and pricing of virtual currency are prohibited in China, but the value and holding of virtual currency itself are not prohibited. As long as the currency is not defined as illegal, it is legal.
similarly, game currency is also recognized as legal property, but its transaction is prohibited by the state, which does not affect the corresponding legal liability caused by the infringement of virtual currency

7. On

10 10, two major domestic payment giants Alipay and WeChat simultaneously voicing, prohibiting the use of platforms in virtual currency transactions. Why did Alipay and WeChat voice at the same time? The reporter understands that this may be related to a dynamic trend of a virtual trading platform in the near future. P>

Alipay and WeChat: once found and resolutely retreated,

has repeatedly banned payment agencies to provide virtual

services. In fact, the central bank and its branches have repeatedly requested payment agencies not to provide services for virtual currency transactions.

as early as the end of 2013, the central bank and other ministries and commissions issued the notice on preventing bitcoin risks, which made it clear that all financial institutions and Payment institutions should not price procts or services with bitcoin, buy or sell bitcoin or act as central counterparties, underwrite insurance business related to bitcoin or include bitcoin in the scope of insurance liability, Shall not directly or indirectly provide customers with other services related to bitcoin, including: providing customers with bitcoin registration, trading, clearing, settlement and other services; 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 September 2017, the central bank and other seven departments jointly issued the announcement on preventing the financing risk of token issuance, which stipulates that financial institutions and non bank payment institutions shall not directly or indirectly provide procts or services such as account opening, registration, trading, clearing and settlement for token issuance financing and "virtual currency"

similarly, the business management department of the central bank issued a notice in January 2018, requiring all legal person Payment institutions under its jurisdiction to carry out self inspection and rectification work in their own units and branches, forbidding to provide services for virtual currency transactions, and taking effective measures to prevent payment channels from being used for virtual currency transactions

8. It is illegal to buy and sell digital currency in China
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

9. It is not illegal for e-commerce companies to do virtual currency exchange, and it is not illegal to invest in virtual currency. But how to get involved in virtual currency transactions is illegal and illegal. It may be suspected of illegal fund-raising
moreover, these so-called virtual currencies are basically empty handed projects with white wolves, and the application scenarios of their publicity are also non-existent and unreliable. These currencies are different from the mainstream digital currencies such as Ruitai, bitcoin and Leyte.

10. It's not a mining machine. It depends on where you put it. There are high gold mines. It's all stone