What are the key points behind the heavy-handed regulation ushered in by the cryptocurrency circle?

In today’s article, I’ll try to use simple logic to give you an analysis of some key elements of this joint voice of the three councils to resist virtual currency speculation, so that you can better recognize the situation and avoid being misled.

Preface:

Recently, because of work reasons, no update article content, although I did not post, but also always pay attention to the hot content and recent big events. In just one week, the whole cryptocurrency circle led by bitcoin took a precipitous plunge, and even the panic level of the participants once became “extreme panic”, the cryptocurrency circle once again appeared “94 events “This time, in addition to Musk’s sudden backwater sell-off of bitcoin, the “three associations” (China Internet Finance Association, China Banking Association, and China Payment and Clearing Association) jointly issued a major statement on May 18 to resist virtual currency speculation.

In today’s article, I will try to give you a simple logic to analyze some of the key points of this joint statement of the three associations to resist virtual currency speculation, so that you can better recognize the situation and avoid being misled.

Without further ado, the text begins:

First of all, for this sudden event, I will give you a little focus, this event can be divided into the following focus:

First, the correct understanding of the essential properties of virtual currency and related business activities, that is, “virtual currency is a specific commodity, not issued by the monetary authorities, and does not have the monetary properties of legal compensation and compulsory, simply understand that virtual currency is not money, should not be circulated in the market as money. This time it is also focused on providing virtual currency trading services, which are suspected of carrying out illegal financial activities.

In fact, the cryptocurrency circle alone from the beginning to now, the regulator is actually not the first time to take a stand, as early as 2017, there was a similar action, and now another repetition of emphasis, enough to show the official attitude is obvious. However, even with all the official clarification, there are always some institutions and individuals who are frantically trying their luck at the edge of breaking the law.

Objectively understand why virtual currency is defined as an illegal act?

Secondly, the reason why the illegality regarding virtual currencies is once again emphasized is mainly because of the following characteristics:

First, the promise of ultra-high returns, depicting a particularly rosy prospect of getting rich overnight, and finally actualizing it through the all-too-familiar pyramid scheme model, so it is recommended that you must be rational when participating in virtual currencies and never fall for the scam.

Second, financial institutions shall not use virtual currencies as pricing for products and services, or accept virtual currencies or use virtual currencies as a tool for payment and settlement.

This is actually familiar to users involved in the cryptocurrency world. We all know about Tesla’s rapid exit from the circle after allowing and supporting bitcoin for trading, but for the bitcoin payment transaction system, we really should trace back to Musk allowing Tesla to trade in bitcoin, and there are now nearly 50 institutions and individuals around the world that accept bitcoin payments. The entire spectrum ranges from Lamborghinis to art auctions and even includes paying for college tuition and rugby players. Actors and more.

However, this round of remediation work for virtual currencies mainly cut off the access of financial institutions, payment institutions to participate in virtual currency market transactions, accelerate the monitoring of funds from the financial end of virtual currency transactions, find clues of illegal and irregularities to take restrictions in a timely manner, and report to the relevant departments in a timely manner.

This is because after China outlawed virtual currency trading, virtual currency trading is achieved through a hidden channel, where the investor first negotiates with the seller for a coin swap fee, during which the platform provides a message portal, which is actually no different from our usual network payment or transfer. The platform will release the coins to the seller, unless you specify the BTC transaction in the memo of the transaction, with such a note the bank may directly shut down the transaction, otherwise it is just an ordinary transaction, even if there is no online payment, there are other QQ groups, WeChat groups and other ways to set up the transaction.

So, in the final analysis, the regulation of the coin circle is actually another warning and deterrent to the coin circle, but as participants we also need to understand that although the regulation can limit the means, but can never limit the greedy human nature:

As cryptocurrency investors, we still need to remember that we should only earn money that we can understand and know!

Some personal thoughts on this incident:

In my understanding, this announcement on virtual currency trading and speculation is basically a ban on the speculation of virtual currency, and we should be clear that it is not a ban on virtual currency, but a restraint on speculation and trading behavior. From this point of view, the future can be predicted that basically all the payment channels and banks and Internet financial companies across the network will act one after another, and also in a very short period of time will quickly cut the virtual currency. Therefore, the recent for this situation, many participants will have extreme panic emotions appear, a large number of selling cash will explode in a short period of time, especially retail investors, this plunge has led to hundreds of thousands of people burst positions, tens of billions of assets evaporated, at this stage of the capital flight will certainly intensify, but I still recommend that we do not act rashly, because at present it is the tip of the storm, this time choose to cash, basically be The chances of freezing the card will be extremely high, so, no matter how big an earthquake occurs in the coin circle this time, first to see the main, wait and see what happens, the participants who have lost money, try not to have too much operation to avoid greater losses.

In fact, from my personal point of view, I think that this regulation comes at a very timely moment. Since last year, the speculative atmosphere in the cryptocurrency circle has been getting more and more serious, and now many people who did not care about the cryptocurrency circle before are still coming to my Bajia number and Zhihu to consult me on how to participate in the speculation. I can actually understand everyone’s mentality, because everyone wants to make money, make fast money and make big money, but the understanding of virtual currency may not be very adequate, and do not know that the price of virtual currency is easily manipulated, we ordinary investors are often only cut leek share.

For example, Musk left sentence right sentence, bitcoin and dog coin can repeatedly and constantly plummet, if this behavior is placed in the stock market, Musk may have been caught 100 times.

If you still want to make money in the hands of these bigwigs, to realize your dream of getting rich overnight, then people are cutting you.

So, we should all be clear, bitcoin these virtual currencies are not legal tender, it is not protected by law, even if we are lost, no one can save you, more can not find a place to reason.

The virtual currency is still the same, we ordinary investors look at the lively can, for can not see the things, no matter how tempting does not belong to you.

I have been emphasizing the need for rational participation in the cryptocurrency world, not that you can’t participate, but the premise is that you need to have enough patience and awareness. If you are completely dominated by greed, the final result speaks for itself!

Finally, I also need to remind you that this regulatory regulation is mainly for institutions and speculation, and there is not much conflict with retail participants. Don’t always be misled by the large panic, look at it rationally, hold your coins, and don’t add losses to your hands and feet. The regulation coming is not a bad thing, if the whole trading system can be improved and standardized, it will be a productive blow to the development of the cryptocurrency field.

End of today’s article, I hope it will help you in this period of extreme panic! Thank you all for reading!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-are-the-key-points-behind-the-heavy-handed-regulation-ushered-in-by-the-cryptocurrency-circle/
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