Virtual currency transaction goes underground
(1) from the analysis of the impact on the amount of money, although it is difficult to analyze the extent to which the network currency scheme creates money in the case of lack of information
however, most of the network currency systems operate in the prepaid mode, that is, issuing network currency when the real currency is exchanged in and withdrawing the currency when the real currency is exchanged out, which has limited impact. In the famous network currency scheme, the money supply is stable and the supply is small, but we still need to be vigilant whether it can ensure that the money supply will maintain a stable level in the long run, and the impact of the change of exchange rate between network currency and real currency.
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
According to the official announcement, digital assets and RMB recharge functions will be closed at 12 noon on September 27, and all trading functions will be closed at 12 noon on September 30. So far, bitcoin trading was officially sentenced to death
some people applaud the state's move to control bitcoin transactions, believing that this money laundering tool should have been closed long ago the invention of bitcoin in the United States disturbs the Chinese market. We should learn from Russia's ban on bitcoin. Although bitcoin makes money, it is not good for the development of the country because it is divorced from the real economy. Many young people are addicted to bitcoin and lose both money and people
however, at present, the state only restricts it, but it has not been completely banned. Big exchanges can not provide bitcoin exchange, so many of them go underground, making it more difficult to control
for young people, the state has banned trading, so it is too risky to re-enter the bitcoin market, so they should be cautious to intervene, and regret if they break the law
The use of underground banks to transfer foreign exchange will bear corresponding criminal responsibility according to the seriousness of the circumstances
according to Article 191 of the criminal law, knowing that it is the income and income of drug-related crimes, organized crimes of underworld nature, crimes of terrorist activities, crimes of smuggling, crimes of corruption and bribery, crimes of Disrupting Financial management order, crimes of financial fraud, the purpose is to cover up and conceal its source and nature
Those who commit any of the following acts shall be sentenced to imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than 5% but not more than 20% of the amount of money laundering; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than 10 years and shall also be fined not less than five percent but not more than 20 percent of the money laundered:(1) providing a fund account
(2) assisting in the conversion of property into cash, financial instruments or securities< (3) assisting fund transfer through transfer or other settlement methods (4) helping to remit funds overseas (5) concealing or concealing the source and nature of the proceeds of crime and their proceeds by other means
extended information:
foreign exchange control refers to the restrictive measures taken by a government to balance the balance of international payments and maintain the exchange rate of its own currency. In China, it is also called foreign exchange management. An international trade policy in which a government restricts the international settlement and foreign exchange trading by law
Foreign exchange control is divided into quantity control and cost control. The former means that the State Administration of foreign exchange directly limits and allocates the amount of foreign exchange transactions, and achieves the purpose of restricting exports by controlling the total amount of foreign exchangethe latter means that the State Administration of foreign exchange implements the compound exchange rate system for foreign exchange trading, and uses the difference of foreign exchange trading costs to adjust the structure of imported goods
Foreign exchange control refers to any form of intervention taken by the government or the central bank in the holding of foreign exchange, foreign trade or capital flow in order to avoid the excessive expansion of the country's money supply or the depletion of foreign exchange reserves Foreign exchange control can be divided into narrow sense and broad sense. In a narrow sense, foreign exchange control refers to a country's government's restrictions on Residents' foreign exchange trading and international settlement under current account. In a broad sense, foreign exchange control refers to a country's government's restrictive management of resident and non resident activities involving foreign exchange inflow and outflow Foreign exchange control is carried out in accordance with the laws, policies and regulations of the country. The executors of foreign exchange control are the central bank authorized by the government, the Ministry of finance or other specialized agencies, such as the administration of foreign exchangethe natural person and legal person targeted by foreign exchange control are usually divided into resident and non resident. The foreign exchange control laws and regulations of various countries are usually stricter on residents and looser on non residents
the objects of foreign exchange control include foreign banknotes and coins, foreign currency payment certificates, foreign currency securities and gold; Some countries also deal with silver, platinum and diamonds
The effective scope of foreign exchange control laws and regulations is generally limited by the territory of the country. In countries where special zones are established, certain foreign exchange control regulations may not apply to special zones. A country may have different degrees of foreign exchange control on different currenciesthe activities targeted by foreign exchange control involve foreign exchange receipt and payment, foreign exchange trading, international lending, foreign exchange transfer and use; The determination of the currency exchange rate of the country; The convertibility of the country's currency; And the cross-border flow of local currency, gold and silver
There are various means of foreign exchange control, which can be divided into two types: price control and quantity control: the former refers to various restrictions on the exchange rate of local currency, and the latter refers to foreign exchange rationing control and foreign exchange settlement control There are three ways of foreign exchange control:1, quantitative foreign exchange control
2, cost foreign exchange control
3, mixed foreign exchange control
reference materials: Network foreign exchange control
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