On Prohibition of undertaking virtual currency
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.
Alipay will ban virtual currency transactions. Virtual currency in China's law does not specify that the law is not illegal. Strong> recently issued a statement that Alipay banned the trading of virtual currencies, but most of them expressed support for Alipay's behavior, saying Alipay was right because there are many uses of virtual currency, which can effectively avoid being exploited by lawless elements. p> Although there is no clear regulation on virtual currency, there are some behaviors such as pyramid schemes in some virtual currencies. There are various forms of currencies, which will lead to various frauds. For those who want to invest, they must be cautious and wait until they know all about them before making a decision< however, with the rapid development of the Internet, maybe virtual currency will develop better
Some virtual currencies are illegal in China. Chinese laws prohibit virtual currencies. The only legal currency in China is RMB. Since the people's Republic of China issued RMB, it has lasted 71 years. With the development of economic construction and the needs of people's life, it has graally improved and improved. So far, it has issued five sets of RMB, forming a multi variety and multi series monetary system of paper money and metal money, ordinary commemorative money and precious metal commemorative money
except for 1,2,5 fen coins, the first, second and third sets of RMB have been withdrawn from circulation, and the fourth set of RMB has been suspended from circulation since May 1, 2018 (except 1 jiao, 5 jiao notes and 5 jiao, 1 yuan coins). The current circulation of RMB is mainly the fifth set of RMB issued in 1999
the people's Bank of China is scheled to issue the fifth set of RMB 50 yuan, 20 yuan, 10 yuan, 1 yuan banknotes and 1 yuan, 5 jiao, 1 jiao coins of the 2019 edition from August 30, 2019. The fifth set of RMB inherits the traditional experience of China's printing technology and draws lessons from the advanced technology of foreign banknote design, which has greatly improved its anti-counterfeiting performance and currency processing modernization
Chairman Mao Zedong's head portrait in the early days of the founding of the people's Republic of China is used on the front of each denomination currency, the famous Chinese flower pattern is used on the bottom, and the main scenery pattern on the back fully shows China's long history and magnificent mountains and rivers, and carries forward China's great national culture by selecting representative patterns with national characteristics
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.
some game players affirm the value of online game point card, and some famous online game companies have given this point card credit. Therefore, in such a specific group, online game point card is likely to become currency. Virtual currency is nothing more than the main currency. In China, the only currency recognized and allowed to circulate in the market by the state is RMB.
MMM fund raising is another typical pyramid investment fraud. Its operation procere is: after the company sponsors draw up the financing plan, they are committed to tempting investors to participate in the shares, and when the accumulation of funds reaches a certain amount, they begin to use these funds to provide returns to investors, so the cycle is endless. As long as the raised capital reaches a certain scale and can be recycled continuously, it can meet the daily cashing and year-end dividend. However, once investors' confidence shakes, stop investing, sell stocks or ask for cash, the pyramid will collapse, and those shareholders who participate in the investment later will lose their money and become victims of fraud
different from what happened in Albania, the MMM in Russia did not die of oil shortage, but "accidental death". If the Russian federal government had not worried that the development of MMM like funds would have impacted Russian commercial banks and affected the savings rate, mmm would have "survived" longer. On July 22, 1994, the Russian government suddenly made a public statement expressing doubts about the high rate of return of MMM. This news almost immediately led to the "melting" of this appalling "iceberg" in a week.
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