Central vs virtual currency exchange

1. It's unreliable. virtual currency has no real value. It's not a real currency, and there is no credit endorsement for it. It's not like that RMB and US dollar all have credit endorsement from big country government. This kind of virtual currency is greatly affected by human manipulation, policy risks, and the government does not allow transactions

2. All virtual currency exchanges in China have been canceled, which should be illegal

3.

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 everyone's control. 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

bitcoin and other so-called "virtual currencies" lack a clear value basis, the market is full of speculative atmosphere, the price fluctuates violently, and investors blindly follow suit, which is easy to cause capital losses

2. Evade supervision and become the "accomplice" of criminal activities:

bitcoin is popular as a payment tool in the so-called "dark web" world“ The "dark net" is full of all kinds of serious criminal activities. One of the original intentions of the invention of bitcoin is to evade regulation. It has the characteristics of anonymity and convenient cross-border flow, and has become the preferred tool of "underground economy"

the existence of bitcoin and exchanges and other instrial chains has constructed a illegal financial market for asset transfer and financing in addition to legal currency, increased the difficulty of regulatory authorities in managing financial security and stability, and promoted regulatory arbitrage and financial crimes. The risks and social security risks it brings to the financial market are far higher than its innovative value

extended information

virtual currency transactions are not protected by law:

according to the notice on preventing bitcoin risks issued by the people's Bank of China and other departments on December 3, 2013 and the announcement on preventing financing risks of token issuance issued by seven ministries and commissions including the people's Bank of China on September 4, 2017, virtual currency is not issued by monetary authorities, It is not a real currency because it does not have the monetary attributes of legal compensation and compulsion

in terms of nature, virtual currency should be a specific virtual commodity, which does not have the same legal status as currency, and can not and should not be used as currency in the market. Although citizens' investment and trading in other virtual currencies are personal freedom, they can not be protected by law

4. It's legal, but there's no exchange. It's only a network platform. In China, there are probably two big bitcoin and lightcoin that can be bought and sold like buying and selling stocks.

5. Because he is a socialist country with Chinese characteristics, only China has gold, not foreign countries

6. On the issue of virtual currency, it is estimated that it will not be so fast. After all, the 19th National Congress of the Communist Party of China was officially held yesterday
although virtual currency is relatively lacking in the level of financial supervision, it is worth discussing that it is the research on the technical level of blockchain
at present, the transaction of virtual currency is closed in China. After all, it involves financial issues. This aspect may be involved in the later part of the meeting, so we should pay attention to it.

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