State blocks foreign virtual currency trading websites

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. At present, bitcoin and other virtual currency transactions are prohibited in China; The original domestic virtual currency trading platform either stopped operation, or transferred to foreign markets

there are two types of virtual currency trading platforms for users to choose from:
first, the original well-known trading platforms in China, such as the global professional website of fire coin, okcoin international station and so on
for users, this type of trading platform is more familiar and has more choices
2. Overseas trading platforms, such as bitfinex, coinbase, etc; Users have relatively few choices. After all, they need to have a certain level of English
but generally speaking, there are some risks in virtual currency transaction, and users are advised to choose rationally and trade cautiously.

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.

With the popularity of bitcoin and other virtual currencies, the risk of fueling illegal economic activities is increasing. The reporter recently learned that the regulatory authorities will ban the domestic virtual currency trading platform

for ordinary consumers, investing in bitcoin is also risky. Many experts and regulators in China have repeatedly appealed that virtual currency trading platforms such as bitcoin are lack of supervision and have become tools for money laundering in illegal economic activities. At the same time, these trading platforms are vulnerable to manipulation by makers, resulting in huge price fluctuations and easy to make retail investors suffer losses. They have become channels for manipulation and ransacking of retail investors by makers and should be banned as soon as possible

"banning bitcoin trading platform is a channel for banning the massive exchange between bitcoin and legal tender, not bitcoin." A person close to the regulator said that the ban on activities related to bitcoin exchange does not affect the development of blockchain technology

the reporter learned from the China Internet Finance Association that the reminder on preventing the risks of bitcoin and other so-called "virtual currencies" released on September 13 said that in recent years, bitcoin and other so-called "virtual currencies" have carried out centralized transactions on some Internet platforms, the number of stakeholders has graally expanded, and the potential financial and social risks can not be ignored

the Internet Finance Association stressed: "there is no legal basis for the establishment of various so-called" currency "trading platforms in China." Investors participate in speculation through bitcoin and other so-called "virtual currency" trading platforms, and face the risk of price fluctuations and security risks. Recently, a large number of trading platforms have been stopped by the regulatory authorities for supporting the token issuance financing (ICO)

more virtual money will inevitably disturb the social order, and it is an inevitable trend to restrict virtual money< br />

5. 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.

6. Australia
in October 2013, bitcoin Bank of Australia was attacked by hackers, with a loss value of more than US $1 million. This incident has aroused the concern of bitcoin security in Australia. The Reserve Bank of Australia and the Australian tax office have said they want a virtual currency tax like a business transfer tax
Bangladesh
the Central Bank of Bangladesh banned the use of virtual currency in September 2014. Using bitcoin will be punished by law
Brazil
Brazil is one of the few countries in the world that has enacted laws related to electronic currency payment systems. Brazil has not banned bitcoin
Bolivia
for regulatory reasons, the Central Bank of Bolivia (BCB) has banned the use of bitcoin. BCB believes cryptocurrency will help business entities evade taxes
Canada
bitcoin is not considered legal, that is, bitcoin is not recognized by Canadian law. Canada's tax authorities plan to implement the same tax plan as barter trade and speculative trading for the bitcoin
China
China is one of the few countries in the world that ban bitcoin completely and prohibit financial institutions and banks from dealing with bitcoin transactions. In December 2013, the people's Bank of China issued a notice calling bitcoin & quot; Virtual goods;, And prevent it from becoming money
trading has been suspended
Ecuador has banned bitcoin, but it has chosen to set up a new state-owned electronic currency and monetary system, and the currency will be protected by the assets of the Central Bank of Ecuador
EU
at present, the EU still has different views on the classification of bitcoin. In October 2012, the European Central Bank's report on virtual currency concerns the legality of bitcoin under the EU legal framework. The European Banking Regulatory Authority issued a bitcoin risk warning, saying that the use of bitcoin has not been restricted at present
Finland
Finland has relevant regulations for the use of virtual currencies such as bitcoin. The relevant regulations are issued by the Finnish tax authority Vero skatt. Any gains arising from bitcoin transactions will be subject to capital gains tax
Hong Kong
Hong Kong has no regulations for bitcoin or any other virtual currency. However, the government is closely monitoring the use of bitcoin to prohibit money laundering, fraud and other illegal activities
India
India does not explicitly stipulate or prohibit the use of bitcoin. However, the Reserve Bank of India (RBI), equivalent to the Central Bank of India, has been forced to shut down India's largest bitcoin trading platform after it issued a notice that the use of bitcoin could cause money laundering and security problems
Israel
the Israeli tax authority is considering levying income tax on bitcoin transactions. Israeli banks even blackmail bitcoin payments
Kyrgyz
Kyrgyz central bank has banned the use of digital currency and bitcoin for the reasons of lack of centralized management, high currency risk and legal problems
Russia
the Central Bank of Russia believes that bitcoin may be used for money laundering and terrorist financing. Therefore, the Russian government banned the use of bitcoin
Taiwan
Taiwan's financial supervision commission is concerned about the uncertainty and speculation of bitcoin, so Taiwan opposes the installation of bitcoin ATM
UK
at present, there are no relevant regulations for the bitcoin. Profits or losses from bitcoin transactions are subject to capital gains tax, while the purchase of bitcoin is still subject to VAT
the U.S.
the U.S. is probably the most supportive country for virtual currencies such as bitcoin. There are no final rules on bitcoin. However, there are also many new rules for the establishment of bitcoin management framework.

7.

With regard to the digital currency which has soared tens of thousands of times before, various policies and news are constantly emerging. Bitcoin fell from the highest point of 130000 to about 40000, and Shanzhai digital coin even fell to 99%. But Xiangge said that the transaction will not end, but there will be periodic fluctuations. In the news of China financial news network, I communicated with senior people in the currency circle for the first time. When the news is all over the place and people are in a panic, the more we need to listen to the ideas and opinions of professionals. My friend, a Xiong, CEO of digital exchange, has experienced the whole process of digital currency take-off, development and adjustment. His current project is digital currency trading platform and related intelligent investment consultant. His thoughts and opinions are summarized as follows:

8. In fact, virtual currency does not play a great role in the development of contemporary Chinese economy, and even plays an obstacle role

after bitcoin, Leyte coin, doggy coin and other encrypted digital currencies were introced into China, they quickly became popular in China, but then the MLM coins became more and more rampant, which seriously hindered the development of domestic economy. But it has its positive side. For example, the token of crowdfunding project on European crowdfunding platform exists as an asset voucher, which is a good application scenario.

9.

Speculation in foreign exchange generally refers to foreign exchange margin trading and firm offer trading. That is, investors conct foreign exchange transactions with the services provided by banks or brokers

At present, there are two main channels for domestic investors to invest in foreign exchange, one is through the foreign exchange firm offer opened by domestic banks, the other is through foreign dealers (domestic agencies) to directly open accounts abroad for foreign exchange margin business. The biggest difference between foreign exchange margin trading and foreign exchange firm offer trading is that foreign exchange margin trading takes the form of margin, and uses leverage principle to make small and broad. This paper focuses on whether the residents log on to the foreign dealer platform through personal login or network agent platform to conct foreign exchange margin trading constitutes the crime of illegal operation of illegal foreign exchange trading or related illegal acts

does speculation in foreign exchange by domestic residents constitute a crime of illegal foreign exchange trading? Before that, some people thought that trading foreign exchange in China must be carried out in designated banks or relevant institutions, and speculation in foreign exchange is obviously a kind of speculation through trading foreign exchange, reselling foreign exchange, and it is a typical reselling for profit, so this kind of behavior constitutes illegal foreign exchange trading outside the prescribed place, As long as the amount of business exceeds 200000 US dollars or the profit exceeds 50000 RMB, it constitutes the crime of illegal business operation

the most famous case is that Huang Guangyu was convicted of insider trading and illegal business operation. The court found that in order to repay his gambling debts in Macao, Huang Guangyu paid Macao's casinos in RMB exchange for Hong Kong dollars through underground banks, and the amount exceeded 100 million yuan. The court held that this kind of behavior belonged to trading foreign exchange outside the designated place, so it constituted the crime of illegal business operation

However, first of all, the object of the crime of illegal foreign exchange trading is China's foreign exchange management system. The reason why the judicial authorities of our country regard Huang Guangyu's behavior as the crime of illegal business operation is that this kind of behavior of purchasing foreign exchange through underground banks infringes the existing foreign exchange management system of our country, and belongs to the typical realization of illegal OTC Foreign Exchange

10.

The mutual fund association said that at present, the relevant management departments have basically completed the clean-up and rectification of domestic ICO activities and "virtual currency" trading venues, ring which some investors turned to overseas to carry out relevant activities. According to the relevant national management policies, the network access channels and payment channels of domestic investors may be affected, and investors will suffer losses. It is understood that recently, as many countries pay attention to strengthening the supervision of the "virtual currency" field, some overseas trading platforms may be forcibly banned by the host country's government, and some overseas trading platforms have been restricted from access e to obvious compliance risks

on September 4, 2017, the central bank and other seven ministries and commissions jointly issued the announcement on preventing the financing risk of token issuance, which clearly pointed out that all kinds of token issuance financing activities should be stopped immediately from the date of the announcement; All financial institutions and non bank payment institutions shall not carry out business related to token issuance financing transactions; For the token financing trading platform with illegal problems, the financial management department will request the competent department of telecommunications to close its website platform and mobile app according to law, request the network information department to remove the mobile app from the app store, and request the instrial and commercial administration department to revoke its business license according to law