Study Of The Legal Supervision Of Bitcoin

As a virtual currency,Bitcoin relies on a cryptography-based P2 P online payment system.Unlike most currencies,Bitcoin does not rely on a specific organization for distribution.It has the advantages of decentralization,anonymity,and low cost.It has grown rapidly since its birth.But it also brings many new challenges and difficulties to individuals,governments and the administration of justice.In general,the price of Bitcoin fluctuates greatly and is easily used by criminals.Moreover,the safety factor is relatively low in the network environment,which brings great difficulties to the state’s intervention in supervision.It also creates some new puzzles in the judicial work.For the regulation of Bitcoin,the current theory of financial supervision is mainly used.Scholars have different opinions on the issue of bitcoin legality and compliance.At present,China’s regulation of bitcoin is a "one-size-fits-all" barbaric management.The relevant regulations use the word "not allowed" to try to solve the problem with high pressure.Instead,the virtual currency transaction is transferred offsite,which brings greater supervision difficulty.In the current laws and regulations,the payment function of bitcoin is not taken seriously,but simply treats it as a speculative commodity,the main purpose is to curb the speculation of bitcoin,and does not adapt to the development of the world trend.Generally speaking,there are some shortcomings in China’s existing regulations on Bitcoin: the lack of relevant laws and regulations,the lack of prevention and control of related risks after Bitcoin transactions,and the bitcoin control system is not suitable for actual needs and social development.The supervision policies of bitcoin in some major foreign countries can provide some reference for China.The analysis shows that some major countries in the world have a positive attitude towards Bitcoin,but they differ enormously in the degree of supervision.The extent to which countries are involved in the regulation of Bitcoin is due to the fact that Bitcoin is a new product with partial currency attributes,and its specific situation is different in different countries.However,countries generally give them a suitable space for free development.Some countries in the regulatory are boldly advancing,and then continue to adjust,and some countries are cautious and conservative,and moderate supervision.In the regulatory mode of Bitcoin,there are also some commonalities in countries.The first is that Bitcoin’s trading platforms and organizations must be registered with regulators or other authorized agencies so that their true information and conditions can be controlled by the regulatory body.Second,the focal point is focused on Bitcoin block trades and Bitcoin derivatives.Finally,in order to better regulate,Bitcoin trading behavior is usually taxed,and taxation is an important way in Bitcoin transaction management.The legal supervision path of Bitcoin in China also needs to be improved.The specific suggestions for improvement are as follows: The laws and regulations on supervision should first be improved as soon as possible,and explain the legal attributes and status of Bitcoin.The corresponding judicial interpretation should be timely introduced according to relevant cases involved in judicial practice;the regulatory body of Bitcoin should introduce new departmental rules and regulations to make up for the shortcomings of the existing regulations,reverse the existing regulatory attitudes,reserve a certain space for the development of Bitcoin in China,and maintain appropriate supervision boundary.Second,the market access mechanism for bitcoin should be established,establish a qualification review system for transaction intermediaries,conduct substantive examination of the transaction platform’s filing,formulate a capital access mechanism,also introduce specific operational rules for the transaction platforms,and clarify the legal responsibility of the relevant subject;for the user or the investor,different management is needed according to different types.Strengthen prevention and control of market risks finally,crack down on all kinds of criminal activities using bitcoin,strengthen the taxation of bitcoin transactions,and establish an information disclosure mechanism.