Research On The Legal Supervision Of Digital Currency

Compared with traditional currency,digital currency has the advantages of greatly reducing the cost of issuance and circulation,making it more open and convenient,and improving the transaction efficiency of buyers and sellers.In 2008,a researcher named Nakamoto published a research report on cryptography,and first proposed the idea of electronic money.Bitcoin was born in this way.Bitcoin is essentially an electronic book collection that can be publicly queried,guaranteed by the so-called distributed network architecture,namely"block chain".Block chain can store two pieces of information,and hackers can't break in and modify it,thus it has an efficiency advantage that no currency can match in the transmission of value information.At the same time,the production process of the digital currency can also be saved and filed on public bills that can be checked each other every ten minutes.The production process of digital money is the so-called"mining" process of electronic data operation.It is the ownership of the electronic data accounting right.Transaction is the transfer of the electronic account book.The miners who mine Bitcoin use calculus to dig random code on the miner to satisfy their desire,merge the code and other transaction information into a block(block)and register it in the account book,so that Bitcoin comes into being.With the rapid development of Internet and electronic payment,the digital currency with block chain as the bottom technology has gradually come into people's vision,and has also received the attention of governments all over the world.Because of the convenience of digital currency transaction which is not limited by time and region and its de-centralization characteristics,it has a significant impact on the world's traditional business system,and its core block chain technology may lead to changes in many fields.At present,different countries have different opinions on the legal status of digital currencies in the Bit currency category,while digital currencies are circulating across borders and regions.Once problems arise,it is difficult to have a unified regulatory measure to deal with them.Take China as an example,bitcoin trading is strictly prohibited in China.If bitcoin trading has a negative impact on our country and infringes on the interests of our citizens or the country,but it is legal for the country to conduct bitcoin trading,then our country has no right to pursue its responsibility.At the same time,many criminals take advantage of the anonymity and decentralization of digital money to engage in criminal activities such as smuggling,drug trafficking and money laundering,so using digital money will bear certain legal risks.China's regula.tory authorities have always believed that Bitcoin is and is only a special fictional commodity.On December 5,2013,the People's Bank of China and other five ministries and commissions issued the Notice on Preventing Bitcoin Risk,which regards Bitcoin as a"specific virtual commodity".Bitcoin is different from ordinary currency,and the state does not recognize its legitimacy.It clearly indicates that Bitcoin can not be used in transactions.Regulators have seen that digital money is not controlled by any centralized platform or institution,and there is the possibility of a huge impact on the financial order.Nor can it monitor its operation through intermediaries such as traditional commercial banks.However,for the legal nature of Bitcoin,governments are not the same.We can get the inspiration from the regulatory policies and ideas of other countries.Based on the comprehe.nsive understanding and research of digital currency and its core block chain technology,this paper makes a thorough analysis of the opportunities and potential risks brought about by digital currency and its core block chain technology.On the basis of the research status of literature at home and abroad,and based on the basic national conditions of our country,this paper puts forward some suggestions on risk management,that is,to clarify the development ideas and revisions of digital currency and block chain technology.Perfect laws and regulations of digital currency,perfect supervision system of digital currency,and strengthen propaganda and education of digital currency.