Analysis of the legality of Bitcoin investments in China

In general, the trader's virtual currency exchange, such as supervising, borrowing, lending, borrowing, trading, etc., is at your own risk. On the other hand, in Korea, there is no law requiring the exchange of encrypted digital devices such as Bitcoin, so most courts cannot make good decisions to protect their rights.

However, national law recognizes crypto assets such as Bitcoin as virtual and legal assets. Of course, the regulatory and business model of business intelligence will be recognized as regulatory in addition to additional laws and regulations relating to encrypted digital devices.

Find the properties of Bitcoin assets

1. Understand through financial analysis

Whenever it relates to the financial system, its content cannot be separated from the characteristic structure of the financial system from an accounting point of view. According to the definition of an asset of the new "Corporate Accounting Standard - Basic Standard" provided by China, Bitcoin is undoubtedly an asset.

Inheritance according to the "Corporate Accounting Standards - Basic Standard" means "assets created by market conditions or past circumstances of the company, which are owned or managed by the company and are expected to bring business benefits to the company. business".In particular, the heritage has the following characteristics:

Assets include past transactions or events.

Assets are owned or managed by a company or business.

Assets can bring future business benefits to companies and businesses.

Bitcoins are not created in the air, but Bitcoins owned by individuals or companies have a specific location and must be strictly tracked due to the nature of the blockchain. Generally, Bitcoin generally comes from two sources: mining or buying.In these devices, Bitcoin benefits from the original assets. Assets include businesses or events that have occurred in the past.

Bitcoin runs on the network blockchain, but the address remains anonymous and anonymous, it must be managed with a private key owned by a person, no one can find out who the owner is unless the personal password is leaked. , you can only view the number of Bitcoins available by a particular address, and from a cryptographic point of view, decrypting a private key is impossible. So, unless the owner discloses the private key password, Bitcoin is owned and operated by the owner only. Thus, Bitcoin fulfills the second need for assets.Assets are owned or managed by a company or business.

According to the investigation, the initial exchange rate of bitcoin was $316.5 each, and there was a statement in bitcoin investment worldwide that "pizza is worth hundreds of millions of dollars" by a programmer who sold 10,000 bitcoins in May 2010. Bitcoin buys two pizzas, bitcoin value is now $19,000 and one pizza is worth almost $100 million. Bitcoin is central to deflationary assets in terms of three market characteristics: Bitcoin's own creation, which is halved every four years, lost Bitcoin forever, and all production is strictly limited to 21 million. If Bitcoin maintains its current position as a stock market, its value will continue to rise in the long term, and Bitcoin will bring long-term market benefits to its owners.From this point of view, Bitcoin can reach one-third of assets, assets can bring future market value to the market and the market.

2. Understanding of the law

Getting bitcoin by digging should be about creating workers to acquire the assets from a legal standpoint first. The taking into account of the legal notices implies the recognition of its rights. Article 2 (2) of the “Company Law Act” is set out in the following article: and household goods. If the law states that the law is the law of the body, it will be governed by those laws. Article 127 of the "Development Code of the Civil Code of the People's Republic of China" is stated as follows: If the law provides for data and property protection In case of virtual network, the rules should be followed.All of these have been secured by the manufacturer to recognize the legality of Bitcoin mining and the similarity of data access rights.

in legal ownershipin terms ofBitcoin has the following properties:

Bitcoin is regulated and controlled by certain sources.

The owners of Bitcoin are unique.

Declares the principle of public confidence.

In legal instruments, there is a potential difference between the real borrower and the nominal borrower, so it is necessary to protect the trust of the third-party lender through publicity methods such as registration and availability.

Bitcoin's underlying technology is blockchain, and all data and information exchange is affected in the blockchain. A blockchain is a public record that records all bitcoin transactions that have taken place across the entire network, and bitcoin miners create blocks every 10 minutes to record transactions that have taken place during that time. . These blocks are linearly added to the blockchain in a timely manner. In the Bitcoin network, traders trade with their key number and exercise their rights with their private number, and all data and information exchanges are completely closed and cannot be modified. .Bitcoin uses blockchain technology to ensure transparency and openness for all members and information exchange, without the need for publicity and reliance on existing laws, and can achieve the goal of protecting the trust of third parties.

In summary, from the point of view of Chinese law, Bitcoin also has important advantages.

Legal review

The law applies to hierarchies or classes.As with any other business or legal entity, the laws applicable to blockchain include laws, regulations, regulations, regulations, decision making, other information, and other modes of management at different levels.

Currently, the industry and technology of the blockchain industry are developing and improving rapidly, and the laws and regulations related to blockchain in the form of financial supervision are still not mature.

However, back to the simple legal category, blockchain has many laws that are referred to in civil law, crime, and governance.Current civil law is often incorporated into the “code of ethics” for the protection of personal information, network devices, and public accountability. another one.

There are also administrative and administrative processes based on finance, network security and IT.

Interpretative decisions often concern the Supreme Court "the law of many issues related to the Internet court trial," which spells out the assertion of evidence electronics such as blockchain.

Additionally, during the rapid blockchain change, the police issued a few negative warnings and announced for convenience.Although it is not a registration document, such as the "Notice of Illegal Protection", "Notice of Security Protection of Token Disclosure and Financial" and Notes on the Protection of Financial Crimes under the names "Virtual Currency" and "Blockchain" is not a comparison, it is still a data that provides insight into the visions, convenience and legality of legislators as law, and is also an important document for related research. Follow legal and regulatory procedures.

Judicial practice case study

Case number 1:

May 3, 2017 People's Court, Wuzhong District, Suzhou City (2017) Su 0506 Xingchu No. In 66 cases, the accused threatened to pay a total of 20 bitcoins for lending information to the victim. The accused extorted a lot of public and private property, and his behavior was considered a violation of extortion.

Under Korean and judicial law, extortion conditions are limited to members of public and private property and the rights of individuals. In this case, Bitcoin is considered an asset and the value of Bitcoin is determined accordingly. to follow. Price analysis confirms the financial value of Bitcoin.

Case 2:

(2017) Jing 0108 Min Chu No. issued by Haidian District People's Court, Beijing on July 8, 2017. Judgment 12967 ruled that if a Bitcoin exchange user uses the crypto digital trading platform, the user, as a shareholder, is responsible for his own income or loss due to the exchange if the platform does not work. And according to the laws of our country, it can be seen that Bitcoin is not provided by a financial company, there are no financial instruments such as legal payments and must be made, not money real. There are no laws and regulations prohibiting it. . Invest and trade, but to warn all departments to strengthen public awareness of investment risk, ordinary people can participate in bitcoin trading on their own risk but worth the investment required, and bitcoin registration and online trading stations provide the same services as required. referred to the Telecommunications Administration.

Therefore, in trading Bitcoin, traders have to take their own risks when the trading platform is not acting as a counterparty.

Case 3:

Judgment of Kaifu District People's Court, Kaifu District, Changsha City, Jan 9, 2018 (2017) Xiang 0105 Min Chu No. In 6277, the court ruled that the terms of bitcoin exchange and the benefits of the exchange were agreed as follows: Bitcoin risks "were reported by the People's Bank of China, Ministry of Industry and Information Technology, China's financial institutions and other departments clarifying the status of Bitcoin. Bitcoin is a virtual currency that does not have the same rights as money and cannot and should not be used as currency in the market. At this point, financial institutions and payment companies cannot not price bitcoin as a product or service, nor buy or sell bitcoin or become an intermediary, and cannot directly or indirectly offer consumers other services related to bitcoin, including: It cannot be four or. with bitcoin Provides services such as currency registration, exchange, withdrawal, and payment, and offers Bitcoin, RMB, and currency exchange services.

This view makes it clear that Bitcoin's behavior as an exchange, including how it is used or valued, is contrary to national monetary policy. In the event of a transaction or dispute, such as a sale, contract or exchange, the exchange between the parties is considered non-existent in most cases.

Therefore

In general, the exchange of virtual currency of the trader, such as supervision, borrowing, lending, borrowing, trading, etc., is at your own risk. On the other hand, in our country, no rule is required for the exchange of encrypted digital assets such as Bitcoin, so most courts do not make sense to defend their rights.

However, national law recognizes crypto assets such as Bitcoin as virtual and legal assets. Of course, the regulatory and business model of business intelligence will be recognized as regulatory in addition to additional laws and regulations relating to encrypted digital devices.

Applications

1. "Company accounting standards - Fundamental standards" Chapter 20 Section 1.

2. Mining refers to the use of a certain energy by investing in a single period of energy through the use of high energy resources that have been obtained through the use of electricity.

3. Bitcoin private key contains owner special data which is 256-bit binary random number, so there is little chance of cracking by cryptographic detection.

4. Zhao Li. Legal Attributes of Bitcoin - Rau HashFast Manager vs. Marc Lowe [J]. Law Sciences, 2018, 000 (004): 150-161.