China's virtual currency management

1. Wenwangwen, also known as network culture business license, is a necessary qualification for operating Internet cultural procts. First of all, virtual currency is a proct of network culture, and it must handle the document and network document. Secondly, virtual currency is a relatively special business project, and the business scope of the network should include the issuance or transaction of virtual currency. If there have been articles on the Internet before, but there is no transaction or issue of virtual currency, then this article needs to be added to the business scope, that is, to make a change. It should be noted that in the issuance or transaction of virtual currency, the company can only operate one of them, that is, the issuance or transaction of virtual currency, not both< (1) application form
(2) application form for the establishment of Internet cultural units
(3) Notice of pre approval of enterprise name or business license and articles of Association< (4) source of funds, amount and credit documents (such as capital verification report, of business license of enterprise legal person of capital verification institution, etc.)< (5) of ID card and resume of the legal representative and principal person in charge< (6) qualification certificates and identity documents of main business management personnel and professional and technical personnel (e.g. copies of academic certificate, professional qualification certificate and identity card)
(7) the certificate of the right to use the workplace (the of the house lease contract and the property right certificate of the lessor shall be submitted if the office space is leased, and the of the house property certificate shall be provided for the self owned place)
(8) business development report (provided in the format of Annex 2)< (9) other documents required to be submitted according to law.

2.

1、 (1) the virtual currency of online games mentioned in this Notice refers to the virtual currency issued by online game operators, which is purchased directly or indirectly by game users using legal tender in a certain proportion, and exists outside the game program and stored in the server provided by online game operators in the form of electromagnetic recording, And a virtual exchange tool expressed in specific digital units. Online game virtual currency is used to exchange the online game services provided by the issuing enterprise within a specified scope and within a specified time. It is expressed in the form of prepaid recharge card, prepaid amount or points, but does not include the game props obtained in the game activities
(2) cultural administrative departments should strictly enforce market access and strengthen the management of online game virtual currency issuers and online game virtual currency trading service providers. Those engaged in the business of "online game virtual currency issuing service" and "online game virtual currency trading service" shall be managed in accordance with the "decision of the State Council on Setting Administrative License for administrative examination and approval items that really need to be retained" (Order No. 412 of the State Council) and the "Interim Provisions on the administration of Internet culture". All enterprises providing the above two services must meet the relevant conditions for the establishment of operational Internet cultural units, apply to the provincial cultural administrative department where the enterprises are located, and report to the Ministry of culture for examination and approval after the initial examination by the provincial cultural administrative department“ Online game virtual currency issuing enterprises refer to online game operation enterprises that issue and provide virtual currency service“ "Online game virtual currency transaction service enterprise" refers to the enterprise that provides platform service for online game virtual currency transaction among users. The same enterprise shall not operate the above two businesses at the same time
(3) in addition to submitting relevant materials in accordance with the law, enterprises applying to engage in the business of "online game virtual currency issuance service" must submit the form of virtual currency expression, scope of issuance, unit purchase price, return method at the time of service termination, user purchase method (including cash, bank card, online payment, etc.) in the business development report User rights protection measures, technical security measures, etc< (4) engaging in the business of "online game virtual currency trading service" must comply with the relevant provisions of the competent department of Commerce on e-commerce (platform) services. In addition to the materials submitted in accordance with the law, such enterprises should submit the service (platform) mode, user purchase method (including cash, bank card, online payment and other purchase methods), user rights protection measures, user account binding with real name bank account, technical security measures, etc. in the business development report< (5) enterprises that have engaged in online game virtual currency issuing or trading services shall apply to the cultural administration department for relevant business operations within three months from the date of printing and distributing this circular. Those who fail to apply within the time limit shall be investigated and dealt with by the cultural administrative department in accordance with the Interim Provisions on the administration of Internet culture. A of the approval document from the cultural administration department shall be sent to the Ministry of Commerce and the people's Bank of China< (6) online game operators should issue appropriate amount of online game virtual currency according to their own business conditions and proct operations. Malicious issuance for the purpose of occupying prepaid funds is strictly prohibited. The total amount of virtual currency issued by online game operation enterprises shall be submitted to the provincial cultural administrative department of the place where the enterprise is located on a quarterly basis
(7) except for legal currency purchase, online game operators shall not provide online game virtual currency to users in any other way. When issuing online game virtual currency, online game operators must keep users' recharge records. The storage period of the record shall not be less than 180 days from the date of user recharge< (8) the use of online game virtual currency is limited to the virtual services provided by the issuing enterprise itself, and shall not be used to pay for or purchase physical procts or exchange for any procts or services of other enterprises< (9) online game operators should take necessary measures and complaint handling proceres to protect the legitimate rights and interests of users, and explain them in a prominent position on the website where the enterprise provides services to users
(x) in case of disputes in the use of virtual currency in online games, the user shall present a valid personal identity card consistent with the registered identity information. After verifying the identity of users, online game operators should provide virtual currency recharge and transfer records, and handle them according to the complaint handling proceres. When the legitimate rights and interests of users are infringed, online game operators should actively assist in obtaining evidence and coordinating solutions< (11) if an online game operator plans to terminate the provision of its procts and services, it shall make an announcement 60 days in advance. When the service is terminated, for the virtual currency that the user has purchased but has not used, the online game operator must return it to the user in legal currency or other ways accepted by the user
if the online game service is interrupted continuously for 30 days e to the stop of service access, technical failure and other reasons of the online game operation enterprise, it shall be deemed to be terminated
(12) online game operation enterprises shall not change the unit purchase price of online game virtual currency. When new types of virtual currency are issued, they shall report to the cultural administration department for record according to the materials listed in Article 3 of this circular
(XIII) if online game operators do not support online game virtual currency transactions, they should take technical measures to prohibit the transfer function of online game virtual currency between user accounts
(14) when providing online game virtual currency related transaction services, online game virtual currency transaction service enterprises must require sellers to register with their real names by using valid identity documents, and require them to bind domestic bank accounts consistent with the real name registration information. Online game virtual currency transaction service enterprises must keep relevant transaction records and accounting records among users, and the retention period shall not be less than 180 days from the date of transaction< (15) online game virtual currency trading service enterprises should establish accountability system and technical measures for illegal transactions, strictly screen the authenticity of trading information, and prohibit illegal transactions. Knowing that the virtual currency of online games is illegally obtained or reported and verified, the false transaction information should be deleted and the transaction service should be terminated in time< (16) online game virtual currency trading service enterprises shall not provide trading services for minors
(17) online game virtual currency issuing enterprises and transaction service enterprises should actively take measures to protect personal information security. When relevant departments investigate according to law, they must actively cooperate and provide relevant records
(18) if online game operators provide virtual currency transfer services between users, they should take technical measures to keep the transfer records, and the relevant records should be kept for no less than 180 days< (19) all localities should cooperate with the public security organs to strictly punish online games with gambling color in accordance with the requirements of the notice on regulating the operation order of online games and banning gambling with online games (GTZ [2007] No. 3) issued by the Ministry of public security, the Ministry of culture and other departments, We will severely crack down on the illegal and criminal activities of gambling by using the virtual currency of online games
(20) online game operators are not allowed to allocate game props or virtual currency by drawing lots, betting, random selection and other accidental means on the premise that users directly invest cash or virtual currency
(21) online game virtual currency issuing and trading service enterprises should actively cooperate with the management department and take technical measures to crack down on "number theft", "private service" and "plug-in"
(22) the Ministry of culture shall notify the people's Bank of China of online payment services provided on the "private service" and "plug-in" websites of online games recognized by the Ministry of culture< (23) the cultural administrative departments at or above the provincial level shall investigate and deal with the enterprises that engage in the issuance and trading services of online game virtual currency without permission in accordance with the Interim Provisions on the administration of Internet culture
(24) for the online game virtual currency issuing and trading service enterprises that violate the requirements of this circular, the cultural administrative department and the competent commercial department shall notify them to rectify within a time limit. Those who fail to rectify within the time limit shall be investigated and dealt with by relevant departments according to law
(25) establish a coordination mechanism for the management of virtual currency in online games, and intensify the crackdown on illegal activities such as "number theft", "private service", "plug-in", illegal profits, money laundering, etc. All departments should regularly communicate, coordinate and cooperate with each other, timely report the relevant situation, and do a good job in the management of online game virtual currency within their respective responsibilities
(26) the online game virtual currency issued by the online game operation enterprise shall not coincide with the name of the props in the game. The administrative provisions for props in online games shall be formulated separately by the cultural administrative department of the State Council in conjunction with relevant departments
notice is hereby given<
Ministry of culture
Ministry of Commerce
June 4, 2009

3. It's not so easy to control the size of the virtual currency in online games.
if we really count it carefully, we will violate something every day.
dare you say that you have never crossed the red light? Crossing the road

4. Unknown_Error

5.

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

6. In China, virtual currency is defined as a special Internet commodity<
notice of the people's Bank of China, Ministry of instry and information technology, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission on bitcoin risk prevention
notice on bitcoin risk prevention
recently, A kind of so-called "bitcoin" calculated by a specific computer program has attracted wide attention in the world, and some domestic institutions and indivials take the opportunity to hype bitcoin and its related procts. In order to 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, in accordance with the law of the people's Republic of China on the people's Bank of China, the anti money laundering law of the people's Republic of China, the commercial bank law of the people's Republic of China, the telecommunication regulations of the people's Republic of China and other relevant laws and regulations, We hereby inform you of the following matters:
first, we should have a correct understanding of the attributes of bitcoin. Although bitcoin is called "currency", it is not a real currency because it is not issued by the monetary authority and has no legal compensation and mandatory monetary attributes. In nature, bitcoin 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< Second, financial institutions and Payment institutions are not allowed to carry out bitcoin related business
at this stage, financial institutions and Payment institutions are not allowed to price bitcoin as a proct or service, buy or sell bitcoin as a central counterparties, underwrite bitcoin related insurance business or include bitcoin into 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
Third, strengthen the management of bitcoin Internet sites
in accordance with the telecommunication regulations of the people's Republic of China and the measures for the administration of Internet information services, Internet sites providing bitcoin registration, trading and other services should be filed with the telecommunications regulatory agency
in accordance with the identification and punishment opinions of relevant administrative departments, the telecommunications regulatory authorities shut down illegal bitcoin Internet stations in accordance with the law< Fourth, to guard against the possible money laundering risk caused by bitcoin
all branches of the people's Bank of China should pay close attention to the trend and situation of bitcoin and other similar virtual commodities with the characteristics of anonymity and cross-border circulation convenience, carefully study and judge the money laundering risk, and study and formulate targeted preventive measures. All branches shall bring into anti money laundering supervision the institutions established according to law and providing bitcoin registration, trading and other services within their jurisdiction, and urge them to strengthen anti money laundering monitoring
Internet stations that provide bitcoin registration and transaction services should fulfill their obligations to fight money laundering, identify users' identities, and require users to register with real names, register name, ID number and other information.
all financial institutions, Payment institutions and Internet websites providing bitcoin registration, trading and other services should report to China Anti Money Laundering Monitoring and Analysis Center immediately if they find suspicious transactions related to bitcoin and other virtual commodities, and cooperate with the anti money laundering investigation activities of the people's Bank of China; If any criminal activity clues such as fraud, gambling, money laundering are found using bitcoin, they should report to the public security organ in time< All departments, financial institutions and Payment institutions should correctly use the concept of money in their daily work, and pay attention to strengthening the ecation of the public's knowledge of money, so as to have a correct understanding of money, a correct view of virtual goods and virtual money, rational investment, a reasonable control of investment risks, and a rational understanding of the concept of money The concept of maintaining the safety of their own property should be included in the content of financial knowledge popularization activities to guide the public to establish a correct concept of money and investment
all financial regulatory agencies may formulate relevant implementation rules in accordance with this circular
the Shanghai headquarters of the people's Bank of China, all branches, business management departments and central sub branches of provincial capital cities are requested to forward this circular to all local financial institutions and Payment institutions within their jurisdiction. Please report to the people's Bank of China in time any new situation or problem found ring the implementation of this circular.

7.

On March 28, the central bank held a national teleconference on monetary gold and silver work in 2018. Fan Yifei, vice governor of the people's Bank of China, pointed out that we should further strengthen reform and innovation and solidly promote the research and development of digital currency of the people's Bank of China. We should strictly strengthen internal management and external supervision, attach great importance to and effectively strengthen the quality control of RMB, carry out large amount cash management, build a cash clearing enterprise supervision system in accordance with the law, carry out the rectification and clean-up of all kinds of virtual currencies, and strive to build a "five in one" anti-counterfeit currency working mechanism

from the perspective of global digital currency regulatory practice, China has adopted a more stringent regulatory approach, but it does not mean that China can stay out of the global financial innovation wave. In the future, China should actively participate in the global governance of digital currency and enhance its influence and voice in the development of digital currency and regulatory rules

8. First of all, we should understand what money is
money, in essence, is the contract of exchange right between owners. Different forms of money are unified in essence. In the past, e to people's unclear understanding of the nature of money, people mistakenly divided money into different categories from different angles, such as debt currency and non debt currency according to the commodity value of money, convertible currency and non convertible currency according to whether the exchange ratio of precious metals is agreed, etc
formally, according to the commodity value of money, it can be divided into physical money and formal money. Physical money itself is a special kind of goods, including the amount of value, such as sheep, precious metals, etc; The formal currency itself has no value, its value is contractual, only contractual value. The two forms are different, but they are unified in essence, that is, they are both agreed as the medium of exchange, and both have contractual value. The purchasing power of money depends on the contract value of money, but the purchasing power of physical money is also affected by its own commodity value. Generally, the commodity value of physical money is less than its contract value as money
in high school textbooks, the essence of money is interpreted as a general equivalent[ 3] This definition only starts from the function, in fact, it does not explain the essence of money, nor can it answer the inherent logical question, that is, why money can act as a general equivalent
for questions about the nature of monetary contract, please refer to monetary contract
secondly, virtual currency
refers to non real currency. Well known virtual currencies, such as online currency of Internet company, q-coin of Tencent company, q-point and voucher of Shanda company, micro currency launched by Sina (used for micro games, Sina reading, etc.), chivalrous Yuanbao (used for chivalrous road game), silver grain (used for bixue Qingtian game), and popular digital currencies in 2013 include bitcoin, Laite coin, infinite coin, quark coin, zeta coin, etc Barbecue coins, pennies (Internet), invisible gold bars, red coins, prime coins. At present, hundreds of digital currencies are issued all over the world. Popular in the circle & quot; The legend of "bitcoin, Wright silver, infinite copper, pennies aluminum"
according to the notice and announcement issued by the people's Bank of China and other departments, virtual currency is not issued by the monetary authority, does not have legal compensation and mandatory monetary attributes, is not a real currency, does not have the same legal status as currency, cannot and should not be used as currency in the market, and citizens' investment and transaction of virtual currency are not protected by law.

9. A few words, that is to standardize the online game virtual currency issue transactions
only in a few dozen words can we make it clear, to the effect that it is the first time to define the virtual currency of online games; Engaging in online game virtual currency business needs approval; The issuance and transaction of virtual currency in online games are standardized; Make it clear that virtual currency shall not pay for physical goods; When the service is terminated, the virtual currency must be returned to the user; Severely crack down on the use of virtual currency in gambling and other activities

10. MSB is a virtual currency exchange and its managers. If they are engaged in digital asset related business in the United States, they must register MSB license in FinCEN. American MSB license is a kind of financial license which is supervised and issued by FinCEN (financial crime enforcement agency of the U.S. Department of the Treasury). It mainly deals with businesses and companies related to money services, including digital currency, virtual currency transactions, ICO issuance, foreign exchange, international remittance and so on. Companies engaged in the above-mentioned related businesses in the United States must apply for MSB license to operate legally.