People’s Daily: “Coin circle” urgently needs to be regulated to “draw a circle”

The problematic “coin circle” urgently needs to be regulated to “draw a circle”.

People's Daily: "Coin circle" urgently needs to be regulated to "draw a circle"

Author: Han Xin

Since last year, the virtual currency represented by Bitcoin has been speculated, with prices soaring and plummeting, causing investors to lament and onlookers to bemoan. Recently, a media investigation into the virtual currency market found that some bitcoin “mining farms” are selling their meat under the guise of “data centers” and “mining” like crazy. This has led to an explosive increase in power consumption. Not only that, but some people, driven by profit, are desperate to find ways to bypass financial institutions’ risk controls and engage in speculative trading, accumulating huge investment risks. From upstream “mining” to downstream trading, the problematic “cryptocurrency circle” urgently needs to be regulated to “draw a circle”.

Since the introduction of Bitcoin, its price fluctuations have attracted the attention of the financial circle, and the virtual currency represented by it has gradually “come out of the circle” and come into the public eye. As a new investment target in the capital market, virtual currencies have triggered a race for capital. But if there is a lack of sufficient investment rationality, it is easy to induce some investors to make a quick buck and end up with being “cut leeks”.

About virtual currency and its use, the relevant departments have long been identified. In 2013, the People’s Bank of China and other five departments jointly issued a notice that virtual currencies are not real money, not only can they not be circulated in the market, but also the related investments and transactions of citizens are not protected by law. 2017, the central bank and other seven departments called a halt to all kinds of token issuance and financing, and carry out special rectification. Not long ago, the China Internet Finance Association, China Banking Association, China Payment Clearing Association and others jointly issued another announcement clearly stating that relevant institutions shall not use virtual currencies to price products and services and shall not conduct business related to virtual currencies. The relevant departments’ three orders of tips and cautions are to help investors recognize the high risk behind the virtual currency speculation and prevent blind adventurism under the herd effect. It should be said that such an attitude is consistent, distinct and resolute when it comes to regulating virtual currency trading speculation.

It’s not for nothing that the relevant departments are taking a multi-pronged approach to zero tolerance for virtual currency speculation. In recent years, although the domestic initial token offering (ICO) has been almost purged under the heavy-handed policy, it is still repeatedly banned and difficult to cure under the huge interest drive. Some platforms have shifted their transactions to overseas platforms, but the main battlefield of issuance propaganda is still in the country, and they try to bypass the risk control of domestic financial institutions for top-up transactions; some “air coins” without physical support and without application value, claiming to have great “money”, but in fact can not be realized; some have “money” prospects. Some of them even absorb funds by issuing so-called “virtual currencies” and “digital assets” under the banner of “financial innovation”, which may lead to illegal fund raising and pyramid scheme frauds. This may lead to more serious economic risks. The company’s main goal is to provide a solution to the problem of virtual currencies and to cut off the access of financial institutions and payment institutions to the virtual currency market.

The company’s main goal is to provide the best possible solution to the problem. The company’s main goal is to provide a comprehensive solution to the problem. The company’s strategy is to take care of the illegal trading of virtual currencies. It should be seen that virtual currency is not a “one-size-fits-all” investment, and the relevant departments are actively working on it, and the general public should also enhance their risk awareness and even take the initiative to participate in the remediation.

A few days ago, Inner Mongolia set up a virtual currency “mining” enterprise reporting platform, the public can be virtual currency “mining” enterprises, for virtual currency “mining” enterprises to provide site rental and other services The public can report on the four types of participants such as virtual currency “mining” enterprises and enterprises that provide services such as venue leasing for virtual currency “mining” enterprises. It is believed that as long as the regulators, relevant platforms and the majority of investors work together and shake their fingers into a fist, a strong synergy will be formed to rectify the virtual currency speculation and guard the people’s “money bags”.

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