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Why is Bitcoin legal (why is Bitcoin trading illegal in China)

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Why is Bitcoin legal (why is Bitcoin trading illegal in China)

Why is Bitcoin legal? Why is Bitcoin legal

Since 2014, the U.S. Securities and Exchange Commission (SEC) has issued the registration requirements and relevant regulations of Bitcoin. These regulations make Bitcoin a formal investment asset; However, due to the characteristics of liquidity, anonymity, and value storage that Bitcoin itself does not have like cash, it cannot be legally transferred or transferred. And now the United States has become one of the world’s largest exchanges, and it is also the first listed company in the world to obtain a license and be able to provide legal currency services; At the same time, regulation in the United States is also constantly strengthening, including cracking down on and punishing illegal activities related to virtual currencies. So why should Bitcoin be legal What is a “non licensed token”? It is a digital form of corporate bond. Compared to other electronic payment tools, this token has no unique functions and is not controlled by the central bank. Therefore, its issuer must be recognized by the federal government and qualified to sell stocks or fund units to the public through special means; And this Cryptocurrency is not issued by the company, but held by the company to ensure that the company’s financial situation is protected and protect the rights and interests of customers; In addition, if an entity is found to have engaged in illegal activities, it may cause losses; 2. What causes the existence of ‘non restricted tokens’? Because Bitcoin belongs to a new concept, we define it as “a specific type of commodity that can be used for exchange purposes or as an investment target for trading”. For example, Bitcoin is a new economy that will have an unlimited amount of economic power, making it an immutable digital unit. That is to say, when you want to purchase this item, you need to first connect to the internet using your wallet software, and then use the QR code on your smartphone to open the Bitcoin wallet, which can achieve automatic redemption; Why is there an “unlicensed token”? Firstly, for blockchain technology, “unlicensed token” refers to the fact that anyone who meets certain conditions can apply for business rights, but it does not mean that all companies will be regulated by national laws. Bitcoin is built on the basis of Distributed database. Each block is verified. All data is traceable and will not be disclosed to third parties. Users can view their own information through network login without having to confirm sensitive data such as private keys themselves; Secondly, Bitcoin cannot be mined, and the mining process is completely open and transparent; Finally, Bitcoin is also difficult to tamper with. Of course, currently most encrypted digital finance applications are not particularly unique

2. “Non delegatedTokens” is a relatively new concept, which refers to a new Fiat money system created according to the provisions of the Anti Money Laundering Law. Although it may be more like the US dollar at some levels, it may be a substitute like gold in other aspects

Why Bitcoin transactions in China are illegal

Original author: CeliaWan

translator | Moni

China is currently the dominant region of the Cryptocurrency market, but it still has some problems, such as China’s virtual asset service provider (VASP) and trading activities are considered illegal in China. Bitcoin is a digital token that is the same investment product as other commodities such as gold or real estate. However, according to the 2018 Financial Action Task Force Guidelines on Preventing and Combating Illegal Financing Activities, individuals who purchase, sell, or hold Bitcoin and other “non cash” assets in the country may face criminal prosecution due to the lack of clear regulatory requirements Although this means that investors can invest money in Bitcoin and earn interest, to some extent, these profits may be huge because people will find themselves actually buying and selling through exchanges. If they really want to transfer the funds out, they must first withdraw all RMB or USD from domestic banks or brokerage companies. Therefore, for those who wish to use their accounts to trade Bitcoin, this is a very dangerous choice To solve this problem, what do we need to know about legality Anyone who trades, transfers, or uses Bitcoin without authorization is considered a criminal act. If you think you have Bitcoin in your wallet, you should transfer it back to your phone; If you believe that there is a real source of information behind Bitcoin, you can say to him/her, “I don’t know.” So be vigilant about this risk no matter what. If you are willing to pay a huge amount of money to an illegal person, please do not try to touch their bank card again, otherwise you will lose ownership. Although many people are already aware of this (BTC), many still cannot understand this possibility Can you access government approved blockchain websites online 7. May your users suffer potential economic losses due to their participation What other factors besides this prevent you from using Bitcoin? Does “Bitcoin” not necessarily mean that Bitcoin is an investment tool Why register as a currency instead of a security? When it comes to personal information, it is often used as a means of storing value. In fact, this is because most people are not true owners. For example, Facebook recently launched a new product called Libra, aimed at establishing a global currency system that can achieve complete transparency in international trade settlement as part of cross-border settlement. However, due to a lack of legal binding force, the National Taxation Bureau under the US Treasury is seeking regulation to ensure consumer protection is subject to strict scrutiny and supervision.

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