Why does the central bank ban virtual currency trading

1. Lack of supervision, illegal use, illegal fund-raising phenomenon! Currency not issued by the state is not legal tender!

2. In 2013, the people's Bank of China issued the notice on preventing bitcoin risks. Later, it was reported that the people's Bank of China had an interview with more than 10 third-party payment companies, explicitly requiring them not to provide payment and clearing services to bitcoin, lightcoin and other trading websites. The price of bitcoin in China has dropped all the way from about 7000 yuan to 3300 yuan. More analysis says that bitcoin will withdraw from China. Is that true< On December 5, 2013, the central bank and other five ministries and commissions issued the notice on the prevention of bitcoin risks, saying 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. The move caused bitcoin trading prices to plummet
since then, the network and shell electronics have announced the stop of bitcoin payment. Recently, the central bank interviewed the third party payment agencies. Alipay and Fu Tong pass closed the virtual currency trading window such as bitcoin, resulting in a further fall in bitcoin prices.
it is also reported that the cooperation between banks and bitcoin trading platform is not supported by the regulatory authorities, which basically turns off the possibility of recharge and withdrawal on bitcoin platform, that is, blocking the mutual exchange between domestic bitcoin and RMB
bitcoin trading platforms such as "bitcoin China" and okcoin also resumed to charge 0.3% transaction fees, and increased the withdrawal fees to 1%. Some analysts believe that this is to prevent a large number of investors from cashing out
all kinds of signs show that bitcoin is getting worse and worse in China. However, the conclusion of bitcoin's exit from China may be overstated
first, bitcoin can be freely traded as a commodity
although the central bank does not recognize the legal tender status of bitcoin, it does not deny the legitimacy of bitcoin as a commodity and does not prohibit investment, trading and purchase of bitcoin. Ordinary people have the freedom to participate at their own risk
Second, the bitcoin trade has not collapsed yet
a bitcoin player said that the current transaction price of bitcoin is not low enough to lead to the collapse of the trade. The price of bitcoin is still higher than the cost price of bitcoin, that is, the price of mining< Third, the transaction channel is not blocked

although some third-party payments have stopped supporting bitcoin transactions, and banks are not optimistic, bitcoin trading platform can also use other third-party payment interfaces, or use foreign payment interfaces to pay. Some bitcoin trading platforms are considering transferring their servers abroad
the above-mentioned bitcoin player said that he once withdrew cash from his personal account to remit money to him. In other words, bitcoin transaction may bypass the third-party payment
at the same time, cash transaction is also a possible way of transaction< Four, the biggest risk of bitcoin trading is not regulation
the biggest risk of bitcoin trading is not government regulation, but security risks
bitcoin is at risk of being stolen by hackers. If there is a large-scale loss of bitcoin, it will directly affect the fairness of market transactions, which is a real "bottom-up"
however, at present, the security risks of bitcoin have not been fully exposed
the overall risk has increased
it must be admitted that the government's increased supervision has further increased the risk of bitcoin trading
moreover, the transaction threshold is obviously higher than before
in essence, as a means of investment, the risk of bitcoin is self-evident. If there is no final person to take over the offer, even if bitcoin is in short supply, it lacks real value and only has limited online use value. If you can't find the last recipient, bitcoin will probably disappear like a bubble.

3.

On January 18, the business management department of the people's Bank of China issued the "notice on carrying out self inspection and rectification of payment services for illegal virtual currency transactions", which made it clear that the unit and its branches are strictly prohibited from providing services for virtual currency transactions, and took effective measures to prevent payment channels from being used for virtual currency transactions

the notice also shows that for the discovered virtual currency transactions, the payment channels of relevant transaction entities should be closed in time, and the funds to be settled should be properly handled

reported and quoted pan Gongsheng as saying in the memo: "we should always maintain a high pressure on the virtual money market, strictly prevent the risk of virtual money from gathering again, and eliminate the potential risks in the bud." He also said that the national and local authorities should ban the places that provide bitcoin and other virtual currency centralized trading, as well as the so-called "wallet" service providers that provide guarantee and clearing services for virtual currency centralized trading, and indivials or institutions that provide market maker services for centralized trading

4. The main purposes are as follows:

1
2
3
4. Protect the property rights and interests of the public, protect the legal tender status of RMB, prevent the risk of money laundering and maintain financial stability
5. Avoid excessive speculation in the name of "virtual currency" for virtual commodities such as bitcoin, which will damage the public interest and the legal tender status of RMB.

5. Because it is a kind of virtual currency and exists on the Internet, it has great risk, instability and uncertainty. Bitcoin is not issued by the central bank. It is a proct of the Internet.

6. 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

7. It's not easy to control, but it's not enough without control. China's economy is at the end of the run. To put it mildly, there are too many false elements. Judging from the current situation, there are many problems in the living standard of the Chinese people. There is a big gap between China and the western developed countries, not to mention in terms of capital. If we engage in virtual currency on the Internet, then China will definitely, It's hard to deal with it. Although it's not easy to implement, we must support the development of virtual currency.

8. What kind of form and specific types of currency are used to ensure the rights and interests of users in your business.

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

10. The first choice is the coin dragon net, and the user is also more, the feeling is still very stable and formal, with more convenient