btc fund custody

『One』How to exchange bitcoin for RMB

You can take bitcoin to the over-the-counter trading platform and sell it for RMB.

『II』Is Bitcoin illegal in China?

Our country’s laws do not explicitly prohibit bitcoin, but its transactions are not completely legal. Bitcoin is not my country’s legal tender but a virtual currency, which cannot be used in the same transaction as RMB. There are bitcoins in our country, and it is not illegal to simply hold bitcoins, but my country has restricted the transaction of bitcoins. Generally, it can only be traded and transferred between individuals. It is not allowed to openly sell it to the public, because it has a relatively large existence. investment management risk.
Legal Basis Article 3 The legal tender of the People’s Republic of China is the Renminbi. Payment of all public and private debts within the territory of the People’s Republic of China in RMB shall not be refused by any unit or individual.
Extension information
1. According to the “Notice on Preventing Bitcoin Risks” issued by the People’s Bank of China on December 5, 2013: Bitcoin has no centralized issuer, limited total amount, and no geographical restrictions on use. and anonymity. Although Bitcoin is called “currency”, it is not a real currency because it is not issued by the monetary authority and does not have currency properties such as legal compensation and compulsion. In nature, Bitcoin should be a specific virtual commodity that does not have the same legal status as currency, and cannot and should not be used as currency in the market. At this stage, financial institutions and payment institutions are not allowed to price products or services in bitcoin, not to buy or sell bitcoin or as a central counterparty, to underwrite bitcoin-related insurance business or to include bitcoin in the scope of insurance liability, and not to directly or Indirectly provide customers with other bitcoin-related services, including: providing customers with bitcoin registration, trading, clearing, settlement and other services; accepting bitcoin or using bitcoin as a payment and settlement tool; conducting bitcoin, RMB and foreign currency exchanges services; carry out bitcoin storage, custody, mortgage and other businesses; issue bitcoin-related financial products; use bitcoin as an investment target for trusts, funds, etc.
2. How to buy and sell bitcoin in China?
1. Select a trading platform. The current trading platform, to strengthen supervision, must have a real-name system. When choosing a Bitcoin trading platform, it is usually better to choose a larger and more influential platform. On the one hand it is safe and secure, on the other hand there are more currencies, active transactions and good liquidity. After choosing a platform, the first step is to sign up. Generally, it is necessary to register by phone or by email. After registration, a real-name system is required. ID cards and corresponding bank cards are used for real names. This is just a general real-name system. Without a real name system, most platforms are limited to not being able to trade. The general real-name system will also have restrictions on the amount and so on. Daily withdrawals or withdrawals are limited. Advanced certification is required if you want to increase the amount and other permissions. Advanced authentication usually requires video authentication, hand-held ID card, etc. After the advanced authentication is completed, the permissions will be much better. At this point, you can exchange fiat currency and virtual currency with other traders using the legal currency exchange in the platform. Currently, domestic platforms do not provide direct deposits of fiat currency, but provide the goal of depositing deposits for the mutual exchange of fiat currency bitcoin between different traders. This is the c2c aspect of the transaction, the platform is just a channel for guarantees and exchanges. Through the c2c aspect of the transaction, personal accounts can convert legal currency into different virtual currencies, but there are not many types of virtual currencies that can be exchanged here, which are usually common mainstream currencies such as bitcoin. Using these currencies, you can buy and sell multiple currencies through the platform’s currency trading. This type of trading is the trading method of choice for most players.
2. Completely private transaction First of all, the two sides of the transaction contact each other, and then the seller in the dealer transfers the virtual currency such as Bitcoin directly to the buyer’s wallet of the dealer through the wallet such as Bitcoin, and the buyer needs money or other equivalent transaction value. Virtual currency will be offered to the seller. The price trader can communicate with himself when trading, eliminating the hassle of registering with the platform. Compared with these two methods, the trading platform requires registration, and the real-name system is more suitable for those users who are not afraid of trouble and are unwilling to trade with their real-name. The fees required for platform exchanges are actually very high. These are the factors that some people choose to deal privately. However, private transactions also have many drawbacks. One is the uncertainty of transactions. If the two parties to the transaction do not meet, there may be a risk that one party will pay and the other will pay. Even if you do a face-to-face transaction, there could be something like outright stealing or threatening to transfer bitcoin into your own hands. Another reason is the lack of liquidity, and it is always impossible to find anything that can be traded at any time. However, private transactions sometimes occur in big hands, and tens of millions of transactions are likely to be traded directly. Transactions at this time may be based on long-term cooperation and trust.
3. When doing bitcoin transactions, you must remember that although you need to use technical indicators, you must not fall into the quagmire of technical indicators. There are countless technical indicators in the K-line chart. Sometimes learning too much will disturb people. objective analysis, the ultimate purpose of learning these indicators is to use these indicators to obtain the information you need. If you get the information you need from a certain indicator, then you don’t need to worry about other indicators. In K There are many indicators in the line chart that share similarities.

“three” what does it mean to apply for ETF for bitcoin

ETF, the full name is “trading open-end index fund”, is a kind of exchange-listed and traded, An open-ended fund with variable fund shares. Investors can subscribe or redeem fund shares from the fund management company, and at the same time, they can also buy and sell ETF shares at the market price on the exchange.

ETF is a special type of index fund: stocks, bonds, commodities, currencies . ETFs are bitcoin holders who consign bitcoin spot to fund companies, and then fund companies use this as a basis to publicly issue fund shares on exchanges and sell them to various investors. In addition, banks and brokers are responsible for underwriting.

Simply put, a Bitcoin ETF is to securitize Bitcoin into an open-ended fund product that can be bought on an exchange.

Successful application of Bitcoin ETF means:

1. Successful application of Bitcoin ETF will firstly lower the threshold of Bitcoin trading and bring a lot to the Bitcoin trading market funds.

2. It will accelerate the development of the cryptocurrency industry, and will also have a certain role in promoting asset custody.

3. ETF is equivalent to telling the public that the official has recognized Bitcoin as a legal asset class, changing people’s overall view on the regulatory risks of cryptocurrencies, which will accelerate the public’s acceptance of Bitcoin as a representative ‘s cryptocurrency.

The launch of any ETF product will naturally stimulate the market of its underlying products, because on the one hand, the underlying products are the most suitable for hedging ETF price fluctuations, and on the other hand, ETF subscription and redemption will inevitably involve buying and selling Physical Bitcoin. If the 15th application is approved, it will be a healthy development, and there will be more demand for derivatives in the market in the next step, such as ETF options.

Where is the Bitcoin ETF?

Bitoffer has a Bitcoin ETF.

But Bitcoin ETF application rejected by SEC again

Last Wednesday, the U.S. Securities and Exchange Commission (SEC) rejected Wilshire Phoenix’s proposal to launch Bitcoin on the New York Stock Exchange (NYSE Arca) ETF application. The SEC said in the filing that Wilshire has not demonstrated that the Bitcoin market is sufficiently resistant to market manipulation.

To date, nearly every bitcoin ETF that has filed has been rejected by the SEC, including those from Bitwise Asset Management, the Winklevoss Brothers, VanEck/SolidX, and Direxion.

It is understood that Wilshire Phoenix first applied to the New York Stock Exchange (NYSE Arca) for a bitcoin ETF last summer, and on February 14th, it filed Amendment No. 6 to its trust fund registration statement with the SEC. Unlike other previous Bitcoin ETF proposals, Wilshire Phoenix’s ETF will invest in both Bitcoin and U.S. Treasury securities. Second, the trust fund will automatically adjust on a monthly basis in response to concerns about bitcoin’s price volatility.

Comment: Bitcoin ETFs have been rejected for a long time because the SEC is based on the risks and concerns associated with cryptocurrency funds, including pricing, liquidity, custody, arbitrage and possible manipulation issues. Obviously, Wilshire Phoenix has paid attention to this in the design of the fund this time. It has added the share of US Treasury bonds. If the price of Bitcoin fluctuates too much, it will increase the share of bonds and reduce the share of Bitcoin. But it’s still useless, and it still doesn’t explain the manipulation of Bitcoin’s price. If this problem is not solved, it will be difficult for a Bitcoin ETF to be approved. Therefore, many people are actually “immune” to this problem, and it is indeed difficult to obtain approval in a short period of time.

The U.S. Securities and Exchange Commission (SEC) once again rejected the application for a Bitcoin ETF, which can be said to have once again shattered the last glimmer of hope for ETFs among cryptocurrency practitioners. Bitcoin ETFs are so popular because they make a lot of sense. We can understand it as a stock on Nasdaq or the New York Stock Exchange. If the Bitcoin ETF is listed, all investors can buy directly from compliant channels, which is equivalent to removing the audience of Bitcoin from the currency circle. Expanding to the U.S. stock market and even the entire global market, this demand will be enormous.

『Wu』 I have 150,000 BTET, is there anyone who wants to buy BTET?

Take China as an example, so��Bitcoin transactions are risky, and there is no basis for legal establishment, so purchase with caution.

On the evening of September 13, 2017, the China Internet Finance Association issued a reminder on preventing the risks of so-called “virtual currencies” such as Bitcoin, pointing out that so-called “virtual currencies” such as Investors should remain vigilant as tools for money laundering, drug trafficking, smuggling, illegal fundraising and other illegal and criminal activities, and report any clues to illegal and criminal activities immediately.

It also emphasizes that there is no legal basis for the establishment of various so-called ‘coin’ trading platforms in China. Unlike most currencies, Bitcoin is not issued by a specific currency institution, but is an “electronic currency” that relies on algorithms. In China, the longest-running Bitcoin trading platform is Bitcoin China, which was established on June 9, 2011.

On December 5 of the same year, the People’s Bank of China, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission jointly issued the “Notice on Preventing Bitcoin Risks”, clarifying that Bitcoin “is not a real currency, but a kind of The nature of “virtual goods”, and Chinese banks and payment institutions are prohibited from directly or indirectly participating in bitcoin transactions, but ordinary Chinese citizens can still trade bitcoin as a commodity.

(5) extended reading of btc fund custody:

Especially, financial institutions and payment institutions shall not price bitcoins for products or services, and shall not buy or sell them Or buy and sell Bitcoin as a central counterparty, shall not underwrite Bitcoin-related insurance business or include Bitcoin in the scope of insurance liability, and shall not directly or indirectly provide customers with other Bitcoin-related services.

Including: providing customers with bitcoin registration, trading, clearing, settlement and other services; accepting bitcoin or using bitcoin as a payment and settlement tool; developing bitcoin and RMB and foreign currency exchange services; developing bitcoin storage, custody, mortgage and other businesses; issue financial products related to bitcoin; use bitcoin as an investment target for trusts, funds, etc.

Reference source: People’s Daily Online-Bitcoin Trading Risks, Strengthening Supervision China is Not Alone

Network-Notice on Preventing Bitcoin Risks

『Lu』 Jiangsu Yancheng Bitcoin case entrusted which institution to sell

Abstract “Notice on Preventing Bitcoin Risks” Article 2 Financial institutions and payment institutions shall not Start a Bitcoin-related business. At this stage, financial institutions and payment institutions are not allowed to price products or services in bitcoin, not to buy or sell bitcoin or as a central counterparty, to underwrite bitcoin-related insurance business or to include bitcoin in the scope of insurance liability, and not to directly or Indirectly provide customers with other bitcoin-related services, including: providing customers with bitcoin registration, trading, clearing, settlement and other services; accepting bitcoin or using bitcoin as a payment and settlement tool; conducting bitcoin, RMB and foreign currency exchanges services; carry out bitcoin storage, custody, mortgage and other businesses; issue bitcoin-related financial products; use bitcoin as an investment target for trusts, funds, etc.

『柒』 Is it illegal for Chinese citizens to buy and sell bitcoins

It is illegal for Chinese citizens to buy and sell bitcoins.
According to the “Notice on Preventing Bitcoin Risks” issued by the People’s Bank of China on December 5, 2013: Although Bitcoin is called “currency”, it has no legal compensation because it is not issued by the monetary authority. Currency attributes such as coercion are not real currency.
【Expanded information】
Bitcoin can be said to be a totem and belief in the currency circle. Bitcoin is indispensable in any virtual currency investment platform, and investment transactions in mainstream currencies such as Bitcoin are also included in the domain kingdom.
Due to its lack of supervision, most of its circulation transactions are similar to the issuance and listing of securities, and there is an act of setting up exchanges to conduct transactions. Its transaction process and transaction results are not transparent, and it is difficult to regulate when encountering problems. Moreover, its price formation mechanism is not transparent, and the transaction price fluctuates greatly, which is easy for investors to suffer huge losses.
Secondly, BTC itself has not been approved by the central bank and cannot be used as currency in China. Once it encounters policy supervision, it is likely to encounter the risk of plummeting prices. The property law does not clearly protect the corresponding provisions of digital currency.
In nature, Bitcoin should be a specific virtual commodity, which does not have the same legal status as currency, and cannot and should not be used as currency in the market. At this stage, financial institutions and payment institutions are not allowed to price products or services in bitcoin, not to buy or sell bitcoin or as a central counterparty, to underwrite bitcoin-related insurance business or to include bitcoin in the scope of insurance liability, and not to directly or Indirectly provide customers with other Bitcoin-related services.
Article 2 of the “Notice on Preventing Bitcoin Risks”: Financial Institutions and Payment Institutions� to conduct business related to Bitcoin. At this stage, financial institutions and payment institutions are not allowed to price products or services in bitcoin, not to buy or sell bitcoin or as a central counterparty, to underwrite bitcoin-related insurance business or to include bitcoin in the scope of insurance liability, and not to directly or Indirectly provide customers with other bitcoin-related services, including: providing customers with bitcoin registration, trading, clearing, settlement and other services; accepting bitcoin or using bitcoin as a payment and settlement tool; conducting bitcoin, RMB and foreign currency exchanges services; carry out bitcoin storage, custody, mortgage and other businesses; issue bitcoin-related financial products; use bitcoin as an investment target for trusts, funds, etc.

『渌』 Colleagues lost money in the coin circle. We also invested. We lost 100,000. Is it illegal?

It is not illegal to do bitcoin business, as long as you don’t use bitcoin It’s no big deal to do something illegal.
The following is the Bitcoin Risk Notice issued by the central bank and other five ministries and commissions (the full text of the Bitcoin Home website):
The “Notice” clarifies the nature of Bitcoin and believes that Bitcoin is not issued by the monetary authority and has no legal Currency attributes such as compensatory and compulsory are not real currency. In nature, Bitcoin is a specific virtual commodity that does not have the same legal status as currency, and cannot and should not be used as currency in the market. However, Bitcoin trading is a commodity buying and selling behavior on the Internet, and ordinary people have the freedom to participate at their own risk.
The “Notice” requires that at this stage, financial institutions and payment institutions shall not price products or services with Bitcoin, shall not buy or sell Bitcoin or act as a central counterparty, shall not underwrite Bitcoin-related insurance business or transfer Bitcoin Included in the scope of insurance liability, and shall not directly or indirectly provide customers with other bitcoin-related services, including: providing customers with bitcoin registration, trading, clearing, settlement and other services; accepting bitcoin or using bitcoin as a payment and settlement tool; Bitcoin, RMB and foreign currency exchange services; carry out Bitcoin storage, custody, mortgage and other businesses; issue Bitcoin-related financial products; use Bitcoin as an investment target for trusts, funds, etc.
The “Notice” stipulates that the Bitcoin Internet site, which is the main Bitcoin trading platform, shall be filed with the telecommunications management agency in accordance with the provisions of the “Telecommunication Regulations of the People’s Republic of China” and the “Administrative Measures for Internet Information Services”. At the same time, in view of Bitcoin’s high risk of money laundering and the risk of being used by criminals, the “Notice” requires relevant institutions to effectively implement legal anti-money laundering such as customer identification and suspicious transaction reporting in accordance with the requirements of the Anti-Money Laundering Law of the People’s Republic of China Obligations to effectively prevent money laundering risks associated with Bitcoin.
In order to avoid excessive speculation in the name of “virtual currency” for virtual commodities such as Bitcoin and damage the public interest and the legal tender status of RMB, the “Notice” requires financial institutions and payment institutions to correctly use the concept of currency in their daily work. Pay attention to strengthening the education of public money knowledge, and incorporate concepts such as a correct understanding of currency, a correct view of virtual commodities and virtual currency, rational investment, reasonable control of investment risks, and maintenance of their own property safety into the content of financial knowledge popularization activities, and guide the public to establish a correct attitude. Currency concept and investment concept.

『玖』 Can ordinary people start a company to invest in Bitcoin custody?

No.
The “Notice on Preventing Bitcoin Risks” issued by the Central Bank and other five ministries and commissions, the “Notice” requires that at this stage, financial institutions and payment institutions shall not price Bitcoin as a product or service, and shall not trade or trade as a central counterparty Bitcoin, shall not underwrite Bitcoin-related insurance business or include Bitcoin in the scope of insurance liability, and shall not directly or indirectly provide customers with other Bitcoin-related services, 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; issue bitcoin-related financial products; As investment targets of trusts, funds, etc. According to the requirements of the “Notice”, no one can open a company for Bitcoin custody investment.
Bitcoin is not a legal tender issued by the Bank of China, it is a virtual digital currency. Although China has no clear legal basis to prove that Bitcoin is legal or illegal, Chinese laws and regulations do not support the public trading of Bitcoin.

Is it illegal to do bitcoin business?

It is not illegal to do bitcoin business, but don’t use bitcoin to do illegal things.

In China, the “Renminbi Management Regulations” prohibit the production and sale ofToken Tickets. Since there is no clear judicial interpretation of the definition of token coupons, if bitcoin is included in the “token coupons”, the legal prospect of bitcoin in China will face uncertainty.

Notice of the Ministry of Culture and the Ministry of Commerce on Strengthening the Management of Virtual Currency in Online Games (Wen Shi Fa [2009] No. 20) on June 4, 2009, the “Notice” stated that it was the first time that online games were clarified. The scope of application of virtual currency distinguishes between virtual currency in current online games and virtual props in the game; at the same time, the notice states that the “Notice” stipulates that companies engaged in related services must be approved before they can operate.

In China, some Taobao stores have also begun to accept the use of Bitcoin, and the number of merchants will gradually increase.

In October 2013, the first issue of the first Bitcoin quarterly “One Bit” was released.

On October 15, 2013, the network acceleration music service announced to support Bitcoin.

On October 26, 2013, BTCMini reported the inside story of GBL being hacked.

On October 31, 2013, the famous Internet lawyer Lei Teng issued a document suggesting that the event of “investigating the closure of the GBL Bitcoin trading platform as soon as possible”, analyzed the “value function” and “use function” of Bitcoin, Bitcoin shall be governed by relevant laws.

December 5, 2013, “Notice of the People’s Bank of China, Ministry of Industry and Information Technology, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission on Preventing Bitcoin Risks”: Bitcoin It is a specific virtual commodity;

Bitcoin transaction is a kind of commodity buying and selling behavior on the Internet, and ordinary people have the freedom to participate under the premise of their own risk.

September 4, 2017, “Announcement of the Central Internet Information Office of the People’s Bank of China, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the Securities Regulatory Commission, the Insurance Regulatory Commission on Preventing the Risk of Token Issuance and Financing”: Prohibition of token issuance and financing ICO; Provide pricing, information intermediary and other services for tokens or “virtual currencies”.

On November 2, 2018, the People’s Bank of China released the “China Financial Stability Report 2018” topic 12 on “crypto assets”.

(10)btc Fund Custody Extended Reading:

Currency Transaction

Purchase Method

Users can Buy bitcoins, and at the same time use computers to “mine” bitcoins by performing a large number of calculations according to algorithms. When a user “mines” bitcoin, they need to use a computer to search for a 64-bit number;

Then compete with other gold diggers by repeatedly solving the puzzle to provide the required number for the bitcoin network. If If the user’s computer successfully creates a set of numbers, he will receive 25 bitcoins.

Due to the decentralized programming of the Bitcoin system, only 25 Bitcoins can be obtained every 10 minutes, and by 2140, the upper limit of circulating Bitcoins will reach 21 million . In other words, the Bitcoin system is self-sufficient, coded to resist inflation and prevent others from breaking that code.

Reference Source: Network – Bitcoin

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