Why does the country want to crack down on virtual currency?

Legal analysis: 1. Price fluctuates violently and consumer protection is lacking. Virtual currency is the product of network, and the digital information flowing in the network is beyond everyone's control. The so-called "virtual currency" such as Bitcoin lacks a clear value base, and the market has a strong speculative atmosphere and the price fluctuates violently. Investors blindly follow the trend of speculation, which is easy to cause financial losses.

2. Escaping supervision and becoming an "accomplice" in illegal and criminal activities: Bitcoin is very popular as a payment tool in the so-called "dark net" world. The "dark net" is full of all kinds of serious illegal and criminal activities. One of the original intentions of inventing Bitcoin was to evade supervision. It has the characteristics of anonymity and convenient cross-border flow, and has become the first choice tool for "underground economy".

Legal basis: "Notice on Preventing Bitcoin Risks" I. Correctly understanding the attributes of Bitcoin Bitcoin has four main characteristics: decentralized issuer, limited total amount, unlimited use and anonymity. Although bitcoin is called "currency", it is not a real currency, because it is not issued by the monetary authorities and has no monetary attributes such as legal compensation and coercion. Essentially, bitcoin should be a specific virtual commodity, which does not have the same legal status as currency, and cannot and should not be used as currency in the market.