What is China’s attitude towards Bitcoin

What is China’s attitude towards Bitcoin? What is the relationship between Bitcoin and the Chinese yuan in the Chinese market We know that central banks around the world are currently intensifying their research on digital currency, blockchain technology, and various application scenarios. However, from a certain perspective, China’s understanding of blockchain technology has not undergone significant changes, and even its attitude has not changed. However, due to regulatory reasons, some government departments in China have begun to manage Bitcoin as an asset to prevent significant fluctuations in its price and make it a speculative investment. So what is China’s attitude towards Bitcoin and Bitcoin? Let’s take a look at China’s policy direction together! Secondly, why prohibit the use of Bitcoin? China has its own set of rules for this – restricting all transactions, prohibiting anonymity, and prohibiting any individual or institution from participating in it; If other countries such as the United States adopt this approach, it may prevent users from purchasing more Bitcoin (as it can cause cyber attacks), leading to investors losing funds. The attitude of the Chinese government towards controlling Bitcoin is actually very simple, as long as you are willing to put the money in your own pocket; Of course, cash can also be used to buy things, which is understandable, but in real life, this is not the case. After all, many things in the world are done by people, and many people do not believe in what they can do. Therefore, even countries that do not support Cryptocurrency or the Fiat money of a country can hardly make people fully accept it. So China maintains an open attitude towards virtual currencies. What is China’s attitude? The answer is clearly opposition. China holds a cautious attitude towards the special currency. First of all, the Chinese government has always attached great importance to the development of Bitcoin: On December 13, 2014, the Guiding Opinions of the CPC Central Committee and the State Council on Strengthening Information Security in the Financial Field clearly pointed out that the criminal activities of illegally raising funds by means of Cryptography should be combated. In late January 2018, Article 19 of the Civil Code of the Civil Code of the People’s Republic of China stipulated that “organizations and individuals engaged in illegal fund-raising activities without approval shall not provide services to social organizations and natural persons.” Secondly, in August 2017, the People’s Bank of China and the Central Cyberspace Office jointly issued the “Announcement on Preventing Token Issuance Financing Risks”, reminding relevant enterprises to pay attention to identifying stakeholder based ICO projects Fund and futures trading venues. In addition, since 2017, the concept of “Internet plus” has become popular, leading to the suspension of stock options of many SMEs. Moreover, the “New Infrastructure” in 2017 has brought new challenges to some companies. In early June 2017, multiple ministries such as the People’s Bank of China and the Ministry of Public Security jointly issued a notice stating that they will severely crack down on illegal and irregular activities that obtain profits through mining. In addition, Chairman Mao, the chief designer of the fourth industrial revolution in 2018, said publicly that “as the world enters the information age, the global economy is accelerating Digital transformation”

China’s attitude towards Bitcoin

China’s attitude towards Bitcoin is “cold and cautious”. Previously, the People’s Bank of China and three other ministries and commissions issued the “Announcement on Preventing the Risks of Token Issuance and Financing”, which clearly stipulated that no unit or individual shall illegally engage in token issuance and financing activities In response, a wave of “enthusiastic” hype has driven the price of Bitcoin abroad to a new high. However, in China, people generally hold negative attitudes towards mining activities, such as “not understanding the situation in China”, “not knowing how to regulate”, and “not realizing that they are prohibited from participating in ICO investments.”

Nevertheless, the Chinese government still actively encourages the development and promotion of related projects, such as using blockchain technology to build a digital currency payment system, conducting encrypted asset trading platforms Establishing statutory trust accounts and providing foreign exchange margin services. However, due to the lack of formal laws and regulations in China, some countries have begun to restrict the use of these virtual currencies According to statistics, in 2019, the Chinese government issued a total of 16 bans, but only 9 policies or documents support the use of Bitcoin; Another 6 were proposed by the Ministry of Finance, of which 4 belonged to the financial sector; Two others provided legitimacy certificates for other businesses (note: the news on January 7 that the Commercial Law of the China was implemented in the middle of December last year); 8 articles will take effect at the end of March 2021; The implementation of Article 10 is voluntarily postponed In addition, according to the latest statement released by the central bank, since 2014, the State Council has regarded virtual currency as property for protection and classified it as a commodity. However, as of the end of 2018, this situation had only undergone five changes. The total market value in 2019 was 114.7 trillion yuan, an increase of about twice compared to 130.5 trillion yuan in 2020. At the same time, since this year, the Federal Reserve Board of Governors of the United States has also announced that it is seeking to approve a new Stablecoin – the dollar Stablecoin DCEP In addition, in recent weeks, the news of Facebook launching the Libra project has attracted global attention. Facebook said that they were studying the digital version of the International Monetary Fund (IMF) based on blockchain technology to deal with the debt problem in the current growing economy. “We think this is a revolution! This is a new innovation, which can not only change our life, but also reshape the way of life of mankind,” said Ma Huateng, CEO of Tencent. When you look at the world like the internet, this new thing will appear, just like email in the past decade. Now your phone is full of cash, and you can use it to make payments. Although many central institutions in countries acknowledge this, most people still firmly believe that they will not completely abandon their views. In fact, in 2017, the Central Intelligence Agency (CBI) of the United States had been cracking down heavily on those involved in money laundering crimes, especially because they were concerned that the United States would evade sanctions by sanctioning Russia.