Research On Legal Risk Prevention Of Digital Cryptocurrency In China

Since Satoshi Nakamoto released the white paper-"Bitcoin:A Peer-to-Peer Electronic Cash System" in 2018,cryptocurrency has begun to enter people’s attention.Based on the blockchain,it is a product of the combination of financial innovation and Internet development.On the one hand,you can see the huge investment benefits of cryptocurrency itself,which is transnational and convenient for transactions.On the other hand,it has to be noticed that he characteristics of decentralization and anonymity can easily lead to regulatory loopholes,giving opportunities for illegal and criminal activities,such as being used for money laundering,drug transactions,terrorist financing,and other illegal activities.The lag of the law also leads to untimely supervision and incomplete.Therefore,with the continuous development of cryptocurrency,countries are constantly changing their regulatory attitudes and strive to gain a voice in the era of cryptocurrency.In this context,the paper focuses on how my country should establish a legal risk prevention system for cryptocurrency at the legal level.Starting from the research background and research content,the article defines the concept and characteristics of cryptocurrency,and lists the possible legal risks.It analyzes the current situation of preventing cryptocurrency’s legal risks in my country,and lists representative departmental regulations and actual governance effects.The discussion focused on the problems existing in our country’s current prevention framework for the legal risk of digital encryption currency,mainly from the aspects of governance effect,ambiguity of legal attributes,jurisdiction of overseas trading platforms,money laundering and taxation risks.Finally,in response to the aforementioned problems,possible solutions are proposed in a one-to-one correspondence,in order to build a risk prevention system for China’s cryptocurrency and promote the healthy development of my country’s cryptocurrency.