Is Bitcoin Trading Illegal?

(1) Why is it illegal to conduct bitcoin transactions in China

Bitcoin has become the most popular cryptocurrency in the world. For bitcoin transactions, some countries allow it, but some countries prohibit it. belong to the latter. Why did China shut down bitcoin trading? Let’s analyze this problem today.

Bitcoin does not currently function as a medium of exchange in China, so it cannot be called a currency. At the same time, Bitcoin has the function of storing value and has a certain investment value. However, the rapid rise of the current price has formed speculative expectations, and a bubble may form in the future. Therefore, it is necessary to take measures in advance, which can also inhibit some transactions through Bitcoin. Unlawful acts of money laundering and transfer of assets.

(ii) Will bitcoin transactions be sentenced?

Bitcoin transactions will not be sentenced.
It is not against the law for the public to speculate on their own coins, which is consistent with the nature of buying and selling stocks, and will not be sentenced. However, if they use the name of reselling bitcoins to carry out illegal and criminal activities such as money laundering and fraud, they will be suspected of corresponding criminal crimes, such as gambling, etc., and will be subject to criminal punishment.
【Expanded Information】
The documents issued by the central bank, the Mutual Finance Office and other ministries and commissions do not identify the illegality of individual people’s currency speculation, but if they open a trading platform in China and organize people to speculate in currency, they are suspected of illegal fund-raising fraud. Therefore, many practitioners set up legal entities abroad to avoid Chinese legal restrictions.
On September 4, 2017, the People’s Bank of China, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission and other departments issued an announcement prohibiting token issuance and financing activities; trading platforms are not allowed to engage in legal currency and tokens, “virtual currency” between each other In exchange business, tokens or “virtual currencies” shall not be bought, sold or acted as central counterparties, and services such as pricing and information intermediaries shall not be provided for tokens or “virtual currencies”.
According to my country’s current regulations, the purchase and sale of Bitcoin is prohibited by financial institutions and trading platforms. Violators will be removed from the APP and their business licenses will be revoked, but personal investment behavior is not prohibited. , investors act at their own risk. For the behavior of buying and selling bitcoin, it does not involve a crime, nor does it involve criminal penalties, but it may involve administrative penalties.
Bitcoin transactions are 7*24 hours, and transactions will only be interrupted during settlement or delivery at 16:00 (UTC+8) every Friday. In the last 10 minutes before delivery, the contract can only be closed, but not opened.
Trading types are divided into two categories, opening and closing positions. Open and close positions are divided into two directions: buy and sell: buy and open long (bullish) means that when the user is bullish or bullish on the index, he newly buys a certain amount of a certain contract. Carry out the “buy to open long” operation, and the long position will be increased after the match is successful. Selling to close the long position (long position closing) refers to the sell contract that the user makes up when he is no longer bullish on the future index market, and hedging with the currently held buy contract to offset the exit from the market. Carry out the “sell to close long” operation, and the long position will be reduced after the match is successful.
Sell and open short (bearish) refers to a new sale of a certain amount of a certain contract when the user is bearish or bearish on the index. Carry out the “sell to open short” operation, and the short position will be increased after the match is successful.
Buy to close the short position (short order to close the position) refers to the buy contract that the user is no longer bearish on the future index market and makes up the contract, which is offset with the current sell contract to offset the exit from the market. Carry out the “buy to close short” operation, and the short position will be reduced after the match is successful.

(iii) Is bitcoin trading illegal?

It is illegal for individuals to trade bitcoins. Tokens or “virtual currency” used in the financing of token issuance are not issued by monetary authorities, do not have currency attributes such as legal compensation and compulsion, do not have the same legal status as currency, and cannot and should not be circulated in the market as currency. use. No organization or individual may illegally engage in token issuance financing activities.
【Legal Basis】
Article 2 of “Announcement on Preventing Token Issuance and Financing Risks”
From the date of this announcement, all kinds of token issuance and financing activities shall be stopped immediately. Organizations and individuals that have completed token issuance and financing should make arrangements for liquidation, reasonably protect the rights and interests of investors, and properly handle risks. Relevant departments will seriously investigate and punish illegal activities in token issuance financing activities that refuse to stop and completed token issuance financing projects in accordance with the law.

㈣ 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. In any virtual currency investment platform, Bitcoin is indispensable.��In the domain kingdom also includes investment transactions in mainstream currencies such as Bitcoin.
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 are not allowed 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.

㈤Is 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. If you want to increase your gold�� and other permissions, advanced authentication is required. 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 that liquidity is not strong 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.

㈥ Is bitcoin illegal?

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 of the Regulations of the People’s Republic of China on the Administration of Renminbi The legal currency of the People’s Republic of China is 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.

㈦ 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 Regulations on the Administration of RMB prohibits the production and sale of tokens. 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, “People’s Bank of China Industry and Information�� Notice of China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission on Preventing Bitcoin Risks: Bitcoin is a specific virtual commodity;

Bitcoin trading as a It 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 risks.

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”.

(7) Is bitcoin trading illegal? Extended reading:

currency trading

purchase method

Users can buy bitcoins, and at the same time use computers to “mine” bitcoins by doing a lot 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

㈧ Is Bitcoin Trading Legal in China

“Bitcoin is not legal in China, China There is no legal protection for Bitcoin transactions. Bitcoin is not a legal currency 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.”
According to the “Notice on Preventing Bitcoin Risks” issued by the People’s Bank of China on December 5, 2013:
Bitcoin has four characteristics: no centralized issuer, limited total amount, no geographical restrictions and anonymity. main feature. 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.
“Civil Code” Article 680 It is prohibited to lend at high interest, and the interest rate of borrowing shall not violate the relevant state regulations. If the loan contract does not stipulate the payment of interest, it shall be deemed that there is no interest. If the loan contract does not clearly stipulate the payment of interest, and the parties cannot reach a supplementary agreement, the interest shall be determined according to the local or the parties’ transaction methods, transaction habits, market interest rates and other factors; loans between natural persons shall be deemed to have no interest.
There is no relevant law. my country only suspends the exchange of bitcoins, and does not declare that holding and trading bitcoins over the counter is illegal. The origin of the birth of Bitcoin is that libertarians represented by Satoshi Nakamoto seek a way of transaction that is not bound by the central banking system. These people expect a monetary system with a higher degree of freedom. This time, Bitcoin is recognized as belonging to Digital assets can be used as delivery objects.
But according to domestic laws and regulations, Bitcoin does not have monetary functions, but this does not prevent it from being a digital asset and can be used as a delivery object. China has never had a “bitcoin illegal” policy.
Kong Jianping said: “Mainland China’s policy is generally to support technological innovation and prevent financial risks. In 2013, the five ministries and commissions document stated that Bitcoin is a virtual commodity, and ordinary people can freely participate in trading, but financial institutions cannot participate. China does not have it. The policy of “Bitcoin is illegal”. The documents of the seven ministries and commissions in 2017 have nothing to do with Bitcoin. We found that in 2017, we saw that many leaders of the central bank spoke about the regulation of digital currency. After July 18, 2019, There are only two words in all speeches, “research”, not “supervision” anymore, and the changes are very big. At the same time, the National Development and Reform Commission also deleted the digital currency mining that was originally planned to be included in the “elimination category”.”
According to the government’s latest attitude on Bitcoin in 2013: Bitcoin belongs to the user’s private virtual assets, so it actually means that it is protected by law, and it can also be obtained from actual cases in our country.�� is on display: In 2018, a Chinese court recently ordered a company to pay back stolen cryptocurrency in a civil dispute, setting a legal precedent for cryptocurrency-related disagreements. This court in Shenzhen is actually confirming that cryptocurrencies have economic value in civil disputes.
Of course, the platform you choose to buy Bitcoin is also very important, because this is an early market that is relatively unregulated or unlicensed, and you must choose an exchange with a relatively high degree of internationalization, because it also means that these exchanges After verification by foreign users and regulations, it is recommended to buy from a top exchange like ZBZB to prevent the loss of your own funds.

0

Related Ad

Comments (No)

Leave a Reply