Why is Bitcoin legal? (Why is Bitcoin illegal)

Why is Bitcoin legal? Editor’s note: This article is from Coin Circle Bond (ID: BitBond007), written by Pisa and reprinted by the Daily Planet with authorization Why is Bitcoin legal? Why can Bitcoin be recognized as legal? 1、 What is Bitcoin Legality? According to Article 6 of the United States Commodity Exchange Act, “the right to a sales contract” includes the obligation to provide specific services in law; And these obligations must be clear and jointly undertaken by the company or individuals; Moreover, under the Securities Act of the United States, no institution or enterprise may refuse to use virtual currency as a means of payment. 2、 What are the illegal uses of Bitcoin? For ordinary investors, it is not difficult to answer questions such as whether Bitcoin is a form of property security and how much investment risk there is. But if you want to know, if Bitcoin can really become an asset, what impact will it have on your life? 3、 Why do we say Bitcoin has illegal profits? Essentially, Bitcoin has lost its legal status and is not subject to government regulation. What does this mean? Let’s first take a look at the legal attributes of Bitcoin:

1. What are the legal characteristics of Bitcoin? 2. The economic principle of Cryptocurrency and its connection with other digital currencies. But at the same time, considering the great price volatility of Bitcoin, countries have also introduced various restrictive Cryptocurrency regulations to deal with this situation. For example, the Korean Financial Commission recently passed a new anti money laundering regulation for the Cryptocurrency industry, which focuses on combating money laundering, with the purpose of improving the security and convenience of the Bitcoin Exchange. However, with the development of blockchain technology, more and more enterprises have adopted more compliant ways to handle related affairs, which has also led some project parties to try to raise funds with new funds. So there are many problems about how to regulate Cryptocurrency

First of all, the Cryptography method used in the encryption algorithm has certain vulnerabilities. For example, an attacker’s private key may cause users to lose their encrypted assets, or even enable hackers to obtain their account information, which may lead to theft. In addition, the system also introduces a smart contract that allows users to generate verification codes themselves and send them a message containing a verifiable signature Secondly, certain functions in encryption protocols are usually not applicable to existing technologies, such as decentralized networks. In order to prevent malicious code from tampering with data or modifying rules, developers have designed some open source Scripting language to avoid such problems, such as Lightning Network, to achieve the purpose of security and confidentiality. Finally, although Cryptocurrency itself is not one of the direct sources of criminal activities, many different types of encryption products have been developed, such as PoW mining model based on consensus layer and proof of equity, community oriented DPOS bifurcation, etc. What is

what is

Bitcoin guilty of

why

In China, for Cryptocurrency, the law stipulates that its issuing subject must be open, transparent, recognized and supervised. The reason why Bitcoin is valued by national regulatory agencies is not only because of its anonymity and the involvement of money laundering in the transaction process, but also because it is a “digital voucher” owned by an entity. Then the act of using virtual currency to buy goods constitutes a crime, so it is a crime of illegal business to convert Fiat money into Bitcoin for sale (hereinafter referred to as “the act”). However, from a practical perspective, unregulated and ineffective assets such as Bitcoin are considered illegal gains. Action “refers to writing the qualitative rules of Bitcoin into the contract and using it as a medium of exchange, executing it according to the agreed procedures, and completing it by promising to pay a certain fee or return the principal. At the same time, the “Behavior” also clearly states that according to Article 9 of the “Notice on Preventing Financing Risks in Token Issuance” (Yin Fa [2018] No. 6) issued by the People’s Bank of China and seven other ministries, “no unit or individual shall issue or provide so-called investment returns to others without the approval of the State Council, regardless of whether the relevant business they engage in has financial products and services related to Bitcoin Therefore, “Bitcoin, as a new economic tool,” does not have widespread use value and cannot be used as an application scenario for other assets or financial derivatives. In addition, as blockchain technology itself is not a new form of application, Bitcoin is prone to becoming a means of criminal targeting. Bitcoin can be used for legitimate purposes. In order to avoid economic losses and social stability, it is necessary to prevent capital flight and conceal the source of criminal gains. Therefore, I propose to hold the individuals involved seriously accountable“