Does China's law prohibit bitcoin transactions?

1. According to China's current regulations, all financial institutions and trading platforms are prohibited from buying and selling Bitcoin. Violators will be removed from the application and their business licenses will be revoked, but individuals are not prohibited from buying and selling Bitcoin.

2. However, if you engage in illegal and criminal activities such as money laundering and fraud in the name of reselling bitcoin, you will be suspected of corresponding criminal offences and will definitely go to jail. The state has repeatedly reminded investors that Bitcoin is purely a speculative tool, which has no actual value and is not suitable for touching.

As early as 20 13, the central bank, the Ministry of Industry and Information Technology, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission jointly issued the Notice on Preventing Bitcoin Risks (hereinafter referred to as the Notice). The Notice concisely explains the nature of Bitcoin, saying that Bitcoin is not issued by a country's currency issuer, nor does it have monetary attributes such as legal compensation and coercion, so Bitcoin is not a real currency. Although the Notice denies the monetary attribute of Bitcoin, that is, Bitcoin does not have the legal status of currency, nor can it be used or circulated in the market as currency, the Notice affirms that Bitcoin can be used as a "virtual commodity".

The concept of 1. Bitcoin was first put forward by Satoshi Nakamoto on June 5438+065438+ 10/day, 2008, and was officially born on June 5438+1 October 3, 2009. According to Satoshi Nakamoto's idea, open source software is designed and published, and a P2P network is built on this basis. Bitcoin is a P2P digital currency. Bitcoin transaction records are open and transparent. Point-to-point transmission means a decentralized payment system.

Second, unlike most currencies, Bitcoin is not issued by a specific monetary institution. It is generated by a large number of calculations according to a specific algorithm. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transaction behaviors, and uses cryptography design to ensure the security of all links in currency circulation. The decentralized nature of P2P and the algorithm itself can ensure that the currency can not be manipulated artificially and create a large number of bitcoins. The design based on cryptography can make bitcoin only transferred or paid by the real owner. This also ensures the anonymity of currency ownership and circulation transactions. The total amount of bitcoin is very limited and scarce. The monetary system once did not exceed1050,000 for four years, and the total will be permanently limited to 21050,000.

3.202 1 June, El Salvador passed the Salvadoran Bitcoin Law, making Bitcoin the legal tender of the country. On September 7th, Bitcoin officially became the legal tender of El Salvador, becoming the first country in the world to give digital currency legal status. On September 24th, 20021year, the People's Bank of China issued a notice to further prevent and deal with the speculative risk of virtual currency transactions. The notice pointed out that virtual currency does not have the same legal status as legal tender.