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Why is Bitcoin difficult to regulate (Reasons why Bitcoin is illegal and banned in China)

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Why is Bitcoin difficult to regulate? According to cryptoglobe news, why is Bit

Why is Bitcoin difficult to regulate (Reasons why Bitcoin is illegal and banned in China)

Why is Bitcoin difficult to regulate? According to cryptoglobe news, why is Bitcoin difficult to regulate? According to a report released by the Financial Times on Thursday, due to a lack of clear legal regulations and a lack of understanding of issues related to crypto assets by participants such as cryptocurrency exchanges, issuers, and wallet operators, Bitcoin has been seen as a high-risk investment in the past year.

In addition, research has shown that central banks around the world have been actively exploring how blockchain technology can help payment systems achieve sustainability from January 2017 to mid-February 2018. Government agencies have also started investigating digital asset transactions since the end of 2017. Since 2016, many countries have taken similar measures regarding virtual currencies. However, it seems that despite different attitudes towards virtual currencies in different countries, Bitcoin remains one of the most popular investment targets in the United States and other regions.

Reasons why Bitcoin is illegal and banned in China

Editor’s note: This article is from Odaily Star Daily and is authorized for reprint.

In the recent surge in the price of Bitcoin, we have found that some people are confused about China’s ban on cryptocurrencies, and their reactions have been more positive.

In fact, in China, the regulatory policy regarding Bitcoin trading, mining, and other activities is already clear – prohibiting the use of any form of digital asset for trading or exchange, including using virtual currencies as means of payment for business and payment processing, as well as restricting activities related to other financial instruments. However, from a certain perspective, the Chinese government does not approve of this practice because they consider it “illegal behavior”. In fact, China has relatively few studies on blockchain technology and digital currencies, so many domestic companies have not accepted it like foreign countries or supported ICO projects or issuing companies. “I know you want to buy a bunch of tokens, but if you really want to invest, you have to go through a process.” (According to the Securities Times, “a company called Beijing Jinkong Technology Co., Ltd. in Shenzhen” was also exposed to be suspected of illegally raising funds of more than 200 million yuan, and the relevant case is still under investigation.) Currently, these companies have not been approved by the government to engage in any form of investment or business, so the statement in the official declaration is not entirely true.

Earlier, the People’s Bank of China announced in March this year that it would launch an e-wallet system based on blockchain technology, which aims to allow consumers to securely store their private keys and transfer them through smart contracts. In addition, according to the announcement, “eCash can be provided by banks, insurance companies, and third-party custodians to enable point-to-point transfers worldwide; additionally, it can be downloaded through mobile applications and connected to network devices, thus providing online shopping and services to users.”

So why is the Chinese government doing this? First, US Treasury Secretary Steve Mnuchin said, “In the United States, our citizens cannot access personal data or information on internet computers, such as names and other information.” Second, Russian President Putin signed a law requiring anyone with an account to register as an independent entity and allowing legal entities that provide services to residents overseas to not use internet services. However, the Russian Federation Council also seems to be considering a ban on the purchase, sale, and holding of cryptocurrency products and services, indicating that Russia wants to prevent such transactions and also implying that China may soon take similar actions.

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