Virtual currency ZD banned in Beijing
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.
at the end of 2013, the central bank and other five ministries and commissions jointly issued the bitcoin risk notice, in which bitcoin was clearly defined as a special Internet commodity, and people could buy and sell freely at their own risk, denying its monetary attribute. At this stage, financial institutions are not allowed to provide bitcoin related services. The transaction platform supporting its transaction must do a good job in anti money laundering< In an interview with the Boao Forum, President Yang Xiaochuan compared bitcoin to a tradable asset like a stamp, which the central bank has no right to ban
since 2013, popular virtual currencies include bitcoin, Laite coin, Fuyuan coin, doggy coin, reborn coin, etc.
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
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
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:
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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.
There is no law in China to ban bitcoin, so it is not illegal to mine and earn bitcoin
it is not illegal to buy bitcoin in China. In 2013, five ministries and commissions jointly issued the bitcoin risk notice, which states that although bitcoin does not belong to legal tender and is not legally compulsory, people can freely participate in bitcoin trading activities when they voluntarily undertake risks
"notice" clearly defines the nature of bitcoin, and holds 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. In terms of nature, bitcoin is a specific virtual commodity, which does not have the same legal status as currency and cannot and should not be used as currency in the market
however, as a kind of commodity trading on the Internet, ordinary people have the freedom to participate in bitcoin trading at their own risk
the notice requires that at this stage, financial institutions and Payment institutions shall not price procts or services with bitcoin, buy or sell bitcoin as a central counterparties, underwrite insurance business related to bitcoin or include bitcoin in the scope of insurance liability, and provide other bitcoin related services to customers directly or indirectly, Including: providing bitcoin registration, trading, clearing, settlement and other services for customers; 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 order to avoid over hype of virtual commodities such as bitcoin in the name of "virtual currency" and damage the public interest and the legal tender status of RMB, the circular requires financial institutions and Payment institutions to correctly use the concept of currency in their daily work, pay attention to strengthening the ecation of the public's knowledge of currency, and correctly understand the concept of currency The concept of correctly treating virtual commodity and virtual currency, rational investment, reasonable control of investment risk, and maintenance of their own property security should be included in the content of financial knowledge popularization activities, so as to guide the public to establish a correct concept of currency and investment
source of reference: People's website bitcoin network virtual currency
According to the news on January 19, the business management department of the central bank recently issued the notice on self inspection and rectification of providing payment services for illegal virtual currency transactions (hereinafter referred to as the notice), requiring legal person Payment institutions within their jurisdiction to strictly prohibit providing services for virtual currency transactions and take effective measures to prevent payment channels from being used for virtual currency transactions
according to the "notice" on the Internet, all legal person Payment institutions carry out self inspection and rectification work in their own units and branches from the date of document release, strictly prohibit providing services for virtual currency transactions, and take effective measures to prevent payment channels from being used for virtual currency transactions. At the same time, the notice requires that all units should strengthen the daily transaction monitoring, timely close the payment channels of relevant transaction subjects for the discovered virtual currency transactions, and properly handle the funds to be settled, so as to avoid mass incidents
in addition, the notice pointed out at the end that all units should report the self inspection situation and the measures taken to the business management department on January 20, 2018
Beijing's Chaoyang District issued a document banning any venue from hosting virtual currency promotion activities, the daily said on August 23. Fengtai District Financial Office of the coordination section of the relevant people confirmed to the financial Associated Press, Beijing to the area of shopping malls, office buildings, hotels and other places, issued a red headed document, asked not to undertake any virtual currency promotion and propaganda activities“ According to the unified requirements of Beijing Municipality, all district financial offices have issued notices to relevant units and streets in the early stage
previously, it was reported that the office of the leading group for financial risk prevention and control in Chaoyang District issued a red headed document to the shopping malls, office buildings, hotels and other places under its jurisdiction, requiring that it should not undertake any virtual currency promotion and propaganda activities
The second type is the special currency issued by the portal website or instant messaging tool service provider to purchase the services in the website. The most widely used is Tencent's q-coin, which can be used to purchase membership, QQ show and other value-added services. There is no exchange relationship between these virtual currencies and legal currencies, and they can only be obtained and used in the online communitythe third kind of virtual currency on the Internet
such as bitcoin (BTC), Wright money (LTC), etc. bitcoin is an electronic currency proced by open-source P2P software. Some people also translate bitcoin as "bitcoin", which is a kind of network virtual currency. It is mainly used for Internet financial investment, and can also be directly used in daily life as a new currency. These virtual currencies can be exchanged with legal tender, and can also be used to purchase virtual and real goods or services
A new round of digital currency regulation may come. On August 22, it was reported that Chaoyang District of Beijing issued a red headed document, requiring it not to undertake any virtual currency promotion and propaganda activities
In this regard, Yin Zhentao, deputy director of the law and Finance Research Office of the Institute of finance, Chinese Academy of Social Sciences, said, "before some investors complained about virtual currency investment, some places have exploded relevant cases, and now targeted supervision has begun.". In addition, it is reported that the current regulatory authorities are resolute and plan to include some key blockchains and virtual currency we media into the scope of regulatory remediation, and the possibility of launching a package of attacks is not ruled out