Economic reference newspaper: rectification of virtual currency speculation chaos can not be delayed

In the next step, the financial management should increase the efforts to crack down on illegal mining and trading activities of virtual currencies, maintain the normal economic and financial order, and create a better environment for the official launch of China’s digital RMB.

Economic reference newspaper: rectification of virtual currency speculation chaos can not be delayed

Recently, the Internet Finance Association of China and three other associations jointly issued the “Notice on Preventing the Risk of Speculation in Virtual Currency Trading” (hereinafter referred to as the Notice), suggesting the risk of speculation in virtual currency trading and emphasizing that virtual currency trading is an illegal financial activity. on May 21, the Financial Stability Development Committee of the State Council further requested that “crackdown on bitcoin mining and trading “. In the next step, targeted measures should be taken to carry out concentrated rectification activities of virtual currency mining and trading behavior to protect the property safety of investors and maintain the economic and financial order.

The virtual currency represented by Bitcoin is a specific virtual commodity, not a digital currency, and does not have the basic attributes of money such as legal compensation and compulsory. Illegal speculative trading in bitcoin, or illegal token issuance and financing under the guise of “digital currency”, illegal pyramid scheme activities, on the one hand, may bring huge property losses to investors, on the other hand, affect the national financial stability and social order. Bitcoin mining is often used as a cover for “big data projects” to cheat local governments and consume large amounts of electricity resources, which is not in line with the “carbon neutral” target direction and must be rectified in the virtual currency market.

In general, there are four major risks in buying, selling or using Bitcoin and other virtual currencies: market, transaction, technology, and compliance. First, the market risk. At present, the scale of bitcoin and other virtual currencies entering the trading market is limited, and it is easy to create an illusion of “strange goods available” for investors. The second is the risk of trading. Many investors vainly attempt to get rich overnight, trading leverage is usually enlarged to 5 times or even higher, in the case of large price fluctuations, investors trading risk is huge. The third is the technical risk. Whether the risk resistance of the virtual currency trading platform can match the rapid increase in trading volume, and whether blockchain and other technologies can withstand the test of security, are the prominent problems faced by the virtual currency trading market. Fourth, compliance risk. Due to the high anonymity and decentralized issuance of virtual currencies, they have become a vehicle for money laundering, drug trafficking, smuggling, illegal fund raising and other illegal and criminal activities, and transactions can easily touch the legal bottom line and red line.

In response to the various risks and legal issues that exist in the process of trading and speculating in virtual currencies such as Bitcoin, China has carried out remediation actions earlier. However, many ordinary investors do not pay attention to the risk tips made by financial management departments and industry associations, some financial institutions, payment institutions and local governments, there are also for bitcoin and other virtual currency mining, trading to provide support and so on. This year, the price of virtual currency represented by bitcoin has skyrocketed and plummeted, and the related speculation and trading activities are very hot. In response, the Internet Finance Association of China and three other associations issued another announcement on preventing the risk of virtual currency speculation. The relevant requirements put forward by the Financial Committee of the State Council have raised the governmental level of combating bitcoin mining and trading practices, which helps to enhance the deterrent effect of virtual currency remediation activities.

The announcement repeatedly emphasized that virtual currencies such as bitcoin are only a virtual commodity, it is not a currency and will not become one. Ordinary investors should not participate in the trading of these virtual currencies and speculate on currency, and financial institutions and payment institutions should not provide any form of support and services for virtual currency trading. In the next step, the financial management should increase its efforts to combat illegal mining and trading activities of virtual currencies, maintain a good normal economic and financial order, and create a better environment for the official launch of China’s digital RMB. Institutions and platforms that illegally participate in virtual currency trading, speculation or provide support services for them should be disposed of jointly with judicial departments in a timely manner to raise the cost of violations and increase the deterrent effect of remediation activities. For bitcoin mining projects, localities should be fully cleaned up and shut down in a timely manner.

Posted by:YuNan,Reprinted with attribution to:https://coinyuppie.com/economic-reference-newspaper-rectification-of-virtual-currency-speculation-chaos-can-not-be-delayed/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-23 20:36
Next 2021-05-23 20:55

Related articles