Demystifying the latest virtual currency industry chaos, mainland individuals actually register overseas companies to participate in transactions

The virtual currency industry chain has collectively moved out due to the increased efforts of multi-party supervision. A reporter from Beijing Business Daily learned that at present, most mining companies have moved overseas, and several leading exchanges have also stated that they will withdraw from the mainland market. But there is still a haze outside the sun. After the personal currency buying business was cleared by the head exchange’s statement, the reporter found that many people actually registered overseas institutions and participated in the currency spot and even leveraged contract transactions as this tour. How to operate the market in the legal red line zone? What are the risks behind? How to regulate in the future? After many days of investigation, a reporter from Beijing Commercial Daily tried to dig out the black and gray industrial chain behind it.

Individuals buy coins and register overseas institutions to operate, and can issue certificates within 3 days after paying thousands of dollars

The virtual currency market is still around the corner. One of the major manifestations is that after major currency exchanges announced that they would clear out individual user transactions, many people are currently trying to participate in the currency market spot and even leverage contract games through overseas registered companies.

Registering overseas companies first, and then connecting with the exchange to establish corporate certification, has formed a gray industrial chain that is interlocking. A reporter from Beijing Business Daily found that there are currently specialized third-party registration companies that only need to provide personal ID cards and blank paper signatures and pay thousands of yuan to complete overseas company registration within 1-3 days.

Just as on October 18th, a reporter from Beijing Business Daily searched for keywords such as “overseas registration” on Taobao, and found that there were more than ten stores including “American Relations Vision Flagship Store”, “Dianyin Flagship Store”, and “Zunrong Mona Flagship Store”. Stores are clearly marked with prices that can handle trademark registration, overseas account and company registration, etc., and the price is within 1,000 yuan.

Among them, a reporter from Beijing Business Daily consulted one of the stores with “coin speculation business”, and the customer service soon introduced the business management personnel to the reporter. According to the salesperson, the business volume has increased sharply in recent times, and most of them have demand for speculation. The customers are mainly registered overseas companies for KYC (users who know you) certification.

“There are often customers who don’t know how to upload the information during the certification. We can also provide assistance. The main thing is to register an overseas company first, and then use the overseas company main body to authenticate.” The industry member said in a familiar way.

A reporter from Beijing Business Daily learned from the introduction of the store that it can handle company registrations for users in more than 200 countries and regions including the United Kingdom, the United States, bvi (British Virgin Islands), Cayman, Japan, South Korea, France, and Thailand. The certificate time is 1-3 days, and the company registration price ranges from 1200-28800 yuan.

Demystifying the latest virtual currency industry chaos, mainland individuals actually register overseas companies to participate in transactions

Among them, the aforementioned salesman emphatically recommended the BVI company registration process and advantages to reporters. The international business company law and tax law called BVI specially designed a set of very flexible and flexible for investors outside the British Virgin Islands. The system is therefore classified as a tax haven in the world.

After the reporter expressed his intention to register, the aforementioned salesperson further informed the registration of the overseas company of the materials that need to be submitted, mainly including registration English, registered capital (50,000 US dollars default), business scope, director name, shareholding ratio, ID number, identity Certificate address, ID card and blank paper signature and other registration information, and inform that “bvi company is registered under the subscription system, and there is no need to verify the capital contribution.”

“It’s true that many large currency speculators are planning to register overseas companies. The cost is about 30-30 thousand yuan. The higher gold content is bvi. Generally, after registering the company, they contact the exchange to open an institutional account. In fact, they are trading now. The institute also showed an embrace attitude towards this.” One currency circle practitioners confessed to reporters that most exchanges will not actually liquidate individual users, but are just some evasive actions in response to supervision. For some institutional account exchanges Even an exclusive API (application programming interface) will be opened, but there are also certain requirements for its holdings of assets, generally around 50 bitcoins .

Regarding the registration of an overseas company to participate in the transaction, a reporter from Beijing Commercial Daily further sought verification from the exchange and received an affirmative answer. Take the reply of a leading exchange as an example, which stated that “if users need overseas accounts, they need to use valid overseas certificates for authentication and use, and the current platform supports corporate-certified users to conduct fiat currency transactions”.

Demystifying the latest virtual currency industry chaos, mainland individuals actually register overseas companies to participate in transactions

Bitcoin futures ETF promotes price recovery, high risks behind the market’s blind pursuit of profit

The addicted coin people do not hesitate to register overseas companies at the cost, and the apparent exit from the exchanges that are arrogant and obscure is actually a secretive. Behind the difficult currency rectification, the word “profit” is inseparable.

In recent days, the price of Bitcoin and other virtual currencies has rebounded again, and the market sentiment in the currency circle has ignited again. On October 18, a reporter from Beijing Commercial Daily noticed that Bitcoin broke through $63,000 on October 16, becoming the second highest in history. As of 12:15 on October 18th, Bitcoin’s latest offer was $6,2015, a rise of 7.8% within a week and a rise of 447.54% during the year.

Demystifying the latest virtual currency industry chaos, mainland individuals actually register overseas companies to participate in transactions

Regarding the increase, Pan Helin, executive dean of the Institute of Digital Economy of Zhongnan University of Economics and Law and executive dean of the Guangzhou Institute of Digital Finance Innovation, told the Beijing Business Daily that the rise of Bitcoin is mainly due to the upcoming launch of the Bitcoin futures ETF. In the early days of futures trading, there will be a demand for passive buying of the subject matter, so Bitcoin is expected to have buying orders and promote the rise.

“The approval of the Bitcoin ETF has really stimulated the entire currency circle.” Xiao Sa, a partner of Dacheng Law Firm, also believes that the main reason for the rise of Bitcoin this time is the related policy changes in the United States. On October 15th, Nasdaq’s official website showed that  the ProShares Bitcoin futures ETF , which has been approved by the Bitcoin Strategy ETF, will be traded on the NYSE Arca exchange under the code BITO. On the same day, the SEC also approved the Bitcoin futures ETF. At this point, the first approved Bitcoin ETF futures in the United States is ready, which directly promotes Bitcoin’s rise all the way.

Although Bitcoin bullish sentiment has the upper hand, the trading risks in the currency circle cannot be ignored. Analysys senior analyst Su Xiaorui told reporters from Beijing Business Daily that participating in currency transactions through overseas institutions shows that these currency users still have strong speculative psychology.

However, it should be noted that overseas institutions also have many risks. First, overseas institutions mainly operate overseas and are prone to information asymmetry with domestic investors; second, these institutions, including related institutions recommended by acquaintances, are mixed, and it is not ruled out that criminals are mixed. Among them, deliberately harming the interests of currency users and even committing fraud.

In fact, reporters from Beijing Commercial Daily have learned from many sources that there are indeed many self-proclaimed overseas currency circle project parties who are still in the third and fourth lines or even sinking the market to promote currency-related business, encouraging some people who lack financial risk awareness to carry out Invest, but ultimately investors become victims.

From a legal point of view, Xiao Sa also told reporters of Beijing Business Daily that domestic currency miners participating in currency transactions through registered overseas institutions cannot effectively prevent relevant risks. As far as the criminal law is concerned, if the domestic currency miners still conduct transactions in the domestic currency circle, according to the territorial jurisdiction principle of the Criminal Law, as long as the behavior constitutes a crime, they will be held criminally liable, even if the currency miners participate in the transaction abroad, Then, according to the principle of personal jurisdiction, there is still the risk of criminal liability.

“Now there are relevant institutions in the market that have not done a good job in the aftermath and directly run away or terminate the transaction. Under this circumstance, it will undoubtedly bring huge losses to the users who participated before.” Xiao Sa reminded.

The chaos of currency-related businesses is not ending, and C2C transactions need to be strengthened

The currency market is full of chaos. Although wave after wave of currency institutions announced the withdrawal of domestic users, it seems that the tide has receded, but in fact many undercurrents are going backwards.

The aforementioned currency industry practitioners revealed to the Beijing Business Daily that although most of the mining machines were transferred overseas, there are still a small number of Ethereum graphics card mining machines disguised as server cabinets and placed in the data center; although some of the leading exchanges are in the data center. The personal currency speculation business is cleared, but most of the exchange business is not affected at present; although the project party has moved overseas and even tried to transform, a small number of them are still looking for opportunities in the sinking domestic market.

In Su Xiaorui’s view, under the high pressure of supervision, the chaos in the currency circle is mainly to continue to carry out currency-related businesses in disguised or bypassing supervision. For individuals who speculate coins, she pointed out that it is necessary to clarify that speculative behaviors are not supported by policies, and that the risks of losses caused by speculation are at your own risk. For subsequent supervision, it is still necessary to increase monitoring and attention to currency-related institutions.

For individuals speculating on coins, Xiao Sa suggested that the key is to invest carefully in advance, understand current national policies, carefully review whether the projects or transactions that you want to participate in are illegal risks, and if you find that the projects or transactions you have already participated in are illegal and illegal. , You should exit in time.

On the other hand, Xiao Sa pointed out that, on the one hand, it can further strengthen publicity to allow individuals to establish a good risk prevention awareness to reduce domestic individuals’ participation in illegal transactions or projects; on the other hand, for previous trading platforms Or institutions, should pay attention to its trends, understand the current trading mode, in order to insight and supervision of possible risk points.

“Private transactions through C2C and cross-border C2C methods, there is currently no high-pressure governance, which belongs to a gray area, but in the future, with the deepening of supervision, including the withdrawal of stocks and the prohibition of incremental policies, the bottom layer of Bitcoin will eventually be involved. It’s only a matter of time before the subsequent tightening of supervision is a matter of time.” Pan Helin further stated that in terms of supervision, especially for domestic transactions, it is necessary to prevent financial institutions from participating in the Bitcoin transaction chain and even provide support for Bitcoin transactions. C2C transactions can be monitored in real time with digital technology to supervise virtual currency transactions.

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