Virtual currency trading by hedging bitcoin

A. Is it better to seek legal action or report to the police when encountering bitcoin trading platform fraud

On October 22, 2013, Qiao from Dongyang searched for bitcoin trading platform gbl on the Internet, and found Recharge 90,000 yuan on the trading platform through third-party payment to buy and sell bitcoin. On October 26, Qiao found that the staff of the online trading platform was offline, and some normal trading procedures could not be implemented, and then reported the case to the Dongyang City Public Security Bureau.
The Public Security Bureau of Dongyang City, Zhejiang Province immediately started an investigation and found that the loss was far more than Qiao. The first case of fraud on a Bitcoin trading platform has been solved.
Lawyer analysis:
Senior special researcher of China Electronic Commerce Research Center, lawyer Zhang Yanlai of Zhejiang Jindao Law Firm believes that virtual currency is not a new concept, q currency, online game currency, etc. have long been known to people However, the emergence of Bitcoin has once again made people realize the power of virtual currency. Compared with traditional q coins, the biggest feature of Bitcoin is that it does not have a unified issuing organization. The generation of Bitcoin is completely dependent on computer algorithms, and anyone can participate in the issuance of Bitcoin.
This makes the source of Bitcoin difficult to trace, and it is precisely because of this characteristic that it becomes a real virtual currency. The anonymity, cross-border nature of Bitcoin and other Internet genes make people see a new form of currency that may circulate in the future society, so the pursuit and use of Bitcoin also continued to rise in 2013. Some foreign governments have recognized the legal status of “Bitcoin”. In my country, some online shops have begun to use bitcoin for transactions, restaurants that accept “bitcoin” consumption have appeared in Beijing, and the first domestic “bitcoin” investment fund is also being raised. After the Ya’an earthquake, One Foundation has received a total of 65 bitcoins. Donation, the market price is about 50,000 yuan.
Problems will of course follow, money laundering, fraud, gambling, etc. This case is a typical case of fraud under the banner of Bitcoin trading. As the first bitcoin fraud case in my country, the public security organs have also conducted in-depth study and understanding of bitcoin-related professional knowledge, and finally cracked the case. On December 5, 2013, five ministries and commissions including the People’s Bank of China and the Ministry of Industry and Information Technology issued the “Notice on Preventing Bitcoin Risks”, firstly clarifying that Bitcoin does not have the status of legal tender, and at the same time requiring financial institutions and payment institutions not to use Bitcoin as a product or service pricing. The central bank believes that there are three major risks in bitcoin transactions: high risk of speculation; high risk of money laundering and the risk of being exploited by criminals or organizations. In the future, the prospect of Bitcoin is not yet clear, especially in the field of currency, which involves financial order and national security, sovereign countries will definitely adopt a prudent and conservative attitude, so the public should also raise sufficient risk awareness.

B. How to hedge with Bitcoin

Bitcoin for hedging? How much can you or your fund company hold for hedging? If you want to do two-way trading, many platforms now have two-way leveraged trading.

C. Can Bitcoin be traded at any time?

1. Virtual currency refers to non-real currency. According to the notices and announcements issued by the People’s Bank of China and other departments, virtual currency is not issued by monetary authorities, does not have currency attributes such as legal compensation and mandatory, is not currency in the true sense, and does not have the same legal status as currency. It should not be used as currency in the market, and citizens’ investment and trading of virtual currency are not protected by law.
2. On the evening of May 18, 2021, China Internet Finance Association, China Banking Association, and China Payment and Clearing Association jointly issued the “Announcement on Preventing Hype Risks in Virtual Currency Transactions”. The announcement clearly stated that relevant institutions shall not carry out business related to virtual currency, and at the same time remind consumers to increase their awareness of risk prevention and beware of loss of property and rights and interests.
Response time: 2021-07-09, please refer to the official website of Ping An Bank for the latest business changes.
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D. Alipay will prohibit virtual currency transactions, How deep is the water of virtual currency

The water of virtual currency is still very deep for us. Some time ago, Alipay issued a statement about virtual currency, which was directly on the hot search, and everyone has different opinions on this virtual currency. But banning virtual transactions is more appropriate from the public’s point of view, because most people still rarely come into contact with virtual currencies.

In short, for those who don’t know, the water of virtual currency is very deep.Be cautious again and again. However, the statement that Alipay prohibits virtual transactions may also show the attitude of superiors towards virtual currency.

E. China CITIC Bank prohibits accounts from being used for bitcoin transactions, should virtual currency be suppressed?

I think virtual currency should be suppressed because virtual currency is just an asset bubble .

Some people will be particularly optimistic about the prospects of virtual currencies, which they believe will eventually replace the traditional currencies we currently use. But judging from the current situation, virtual currency is only under the banner of replacing traditional currency, but it is controlled by traditional currency, which is a very embarrassing reality.

What’s going on here?

China CITIC Bank has issued a clear notice that all accounts will be prohibited from being used for bitcoin transactions in the future. This is pretty explosive news, although not all bitcoin transactions go through China CITIC Bank. But when one bank starts banning bitcoin transactions, many banks follow suit. This means that Bitcoin transactions will be restricted by many banks, which is not conducive to the entire Bitcoin market.

F. Bitcoin payment is suspended, what are the disadvantages of virtual currency participation in operation

According to the official announcement, digital assets will be closed at 12:00 noon on September 27 and RMB recharge function, and decided to close all transaction functions at 12:00 noon on September 30. So far, Bitcoin trading has been officially sentenced to death.

This time the country has taken action to control bitcoin transactions, and some people applauded, thinking that this money laundering tool should have been shut down long ago. The invention of Bitcoin by the United States disrupted the Chinese market, and should learn from Russia’s ban on Bitcoin. Although Bitcoin creates a profit-making effect, it is not good for the development of the country if it is separated from the real economy. Many young people are addicted to it, and they end up with no money and money.
However, the country is currently only restricting it, and it has not been completely banned. Large exchanges cannot provide bitcoin exchange, and many of them go underground, making it more difficult to control.
For young people, the country has banned transactions, and it is too risky to enter the bitcoin market, so it is better to intervene cautiously, in case of breaking the law and regretting it.

G. What is the transaction mode of bitcoin

The transaction mode of converting bitcoin into legal currency: 1. Register to a bitcoin exchange, such as okcoin, fire 2. Recharge to the exchange, 3. Buy Bitcoin; transactions between Bitcoin and Bitcoin: 1. Get the other party’s Bitcoin address, 2. Use your Bitcoin wallet or exchange Go to the other party’s bitcoin address. 3. If you accept bitcoin, first give your bitcoin address to the other party, and then the other party operates, and you wait for the currency.

H. Does defrauding virtual currency constitute a crime of fraud, such as bitcoin?

1. Although online virtual currency cannot be completely equal to money and other traditional property, but in certain Under the circumstances, the perpetrator can realize the criminal purpose of illegally obtaining other people’s property through the possession of virtual currency. Therefore, fraudulent acts targeting virtual currency may also endanger the property safety of citizens, legal persons and other organizations, have considerable social harm, and should also be punished as a crime.
2. If the public security organ detains the criminal suspect and the procuratorate cannot approve the arrest, it should apply for release on bail pending trial. Bail pending trial also has to go to court.
Article 77 of the “Criminal Procedure Law” stipulates that: People’s courts, people’s procuratorates and public security organs may not release criminal suspects or defendants on bail for a maximum of twelve months, and residential surveillance for a maximum of six months. moon.
During the period of release on bail and residential surveillance, the investigation, prosecution and trial of the case shall not be interrupted. If it is found that criminal responsibility should not be investigated or the period of release on bail or residential surveillance has expired, the release on bail and residential surveillance shall be lifted in a timely manner. When release on bail pending further investigation or residential surveillance, the person who has been released on bail pending further investigation or residential surveillance and the relevant units shall be notified in a timely manner.

I. The Financial Commission stated that it would crack down on Bitcoin mining and trading, and what impact will this have on virtual currencies

The Financial Commission stated that it would strictly crack down on the mining and trading of virtual currencies such as Bitcoin. Trading, because scams about virtual currencies are 12 times more common these days. The related pyramid schemes and the suspected false platform problems continue to appear, which also affects the stability of the financial market to a certain extent.

The reason why virtual currency is constantly restricted is because the investment heat in the market is too high, and more and more retail investors are investing in this thing. This is not a good phenomenon, because retail investors do not Knowing the confidence of the market, he is very happy after making money, but after losing money, he feels that there is no hope in his life, and that it is all a scam. In this case, he is not the best choice for investment at all.It is to continuously limit these virtual currencies and let the public have as little contact with this thing as possible, and the possibility of being cheated will naturally drop a lot.

J. Regulations Prohibiting Virtual Currency Transactions

“Notice on Preventing Bitcoin Risks”
In order to maintain financial stability and protect people’s property safety, recently, the People’s Bank of China has The department interviewed some banks and payment institutions on the hype of virtual currency transactions. On the evening of June 21, the Agricultural Bank of China took the lead in issuing a statement stating that it will strictly implement relevant national regulatory requirements, resolutely crack down on virtual currency-related business activities, and prohibit the use of its services for virtual currency transactions. Subsequently, institutions such as China Construction Bank, Industrial and Commercial Bank of China, Postal Savings Bank of China, Industrial Bank and Alipay issued similar statements, stating that they will continue to strengthen investigation and monitoring efforts. Once relevant behavior is found, measures such as suspending account transactions and terminating financial services will be taken immediately, and timely measures will be taken. Report to relevant departments.
【Expanded Information】
According to my investigation, with the announcement of major banks and Alipay, the trading price of Bitcoin fluctuated greatly. According to the data of the bitcoin website Coindesk, at 20:27 on the evening of the 22nd, bitcoin fell sharply to US$29,771, with a cumulative decline of 9.12% in the past 24 hours, which was cut to the waist from the highest point in bitcoin’s history in April at US$62,829. below. Other virtual currencies also fell sharply. Ethereum once fell by more than 10%, falling below $1,900 per piece; Binance Coin and Cardano fell by more than 5%, and Dogecoin fell by nearly 16%.
Regulatory levels are increasing, and heavy blows have been made recently
In recent years, the supervision and rectification of the virtual currency field by the regulatory authorities has never stopped. On December 5, 2013, the People’s Bank of China and other five ministries and commissions issued the “Notice on Preventing Bitcoin Risks”, which clearly emphasized that Bitcoin is not a real currency, nor is it a financial product in the financial system such as banking and insurance, but a kind of virtual merchandise.
In September 2017, the “Announcement on Preventing Token Issuance and Financing Risks” issued by the People’s Bank of China and other seven departments also clearly stipulates: “The tokens or “virtual currency” used in the financing of token issuance shall not be issued by the monetary authorities. It does not have the properties of currency such as legal compensation and mandatory, does not have the legal status equivalent to currency, and cannot and should not be used as currency in the market.” Relevant departments have directed local governments to focus on banning 173 platforms that illegally sell tokens and tickets. Since then, it has maintained a high-pressure situation of supervision, and a total of 38 new domestic platforms have been withdrawn.
In May this year, China Internet Finance Association, China Banking Association, and China Payment and Clearing Association jointly issued the “Announcement on Preventing the Risk of Hype Risk in Virtual Currency Transactions”, stipulating that relevant institutions shall not conduct business related to virtual currency, and at the same time remind consumers Operators should also improve their awareness of risk prevention and beware of property damage.
On May 21st, the State Council Finance Committee requested to crack down on Bitcoin mining and trading, and resolutely prevent individual risks from being passed on to the social field. It is worth noting that this is the first time that the Financial Commission has proposed to crack down on Bitcoin mining and trading.
On May 26, the Inner Mongolia Development and Reform Commission issued the “Eight Measures on Resolutely Combating and Punishing Virtual Currency “Mining” (Draft for Comment)”. In fact, as early as March this year, the Inner Mongolian government requested that all virtual currency “mining” projects be shut down by the end of April 2021, but many miners changed their vests to continue “mining”. To this end, the Inner Mongolia Development and Reform Commission has set up a reporting platform to call on the general public to actively report illegal “mining” activities. Subsequently, some regions with lower electricity prices such as Yunnan, Qinghai, and Sichuan also issued documents to stop virtual currency “mining” behavior.
The financial risk is high, and it runs counter to energy conservation and emission reduction
Why the central and local governments frequently issue relevant policies and comprehensively block virtual currency The main reason is that virtual currency has the characteristics of high anonymity and decentralized issuance. Separated from the real economy, it has also become a carrier of illegal and criminal activities such as money laundering, drug trafficking, smuggling, and illegal fundraising, seriously disrupting the normal order of the market economy and finance, and infringing on the property safety of the people. According to the analysis of industry insiders, there are at least three risks in hyping virtual currency: “First, virtual currency has no real value support, nor sovereign credit and commercial credit, and the price is easily manipulated, causing skyrocketing or plummeting; second, there is no virtual currency in the country. In currency trading venues, there are no consumer protection measures for overseas purchases of ‘over the wall’, and investors can only bear their own losses; third, virtual currencies are vulnerable to ‘Musk-style’ hype, and investors are ‘cut leeks’ in a short period of time. As a result, huge property losses were incurred.”


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