Reality of Risk of Bitcoin and China's Legal Regulation Measures
Zhang Che · Journal of Chongqing University of Posts and Telecommunications · 2014
Bitcoin is a new kind of digital currency which was born in 2009. With its difference from traditional electronic currency and the point-to-point transaction characteristics of the virtual currency,bitcoin quickly catches on around the world and becomes what is called the most freecurrency. A series of unique properties of bitcoin not only attracted the attention of a large number of speculators,but also hid risk of money laundering crime. Governments around the world hold a conservative attitude of legal status of the bitcoin for its highly unstable price threat to the financial markets. Although the bitcoin and its derivative currency is full of uncertainty in the future,what is certain is that the digital cash is difficult to disappear within a few years. Rather than deny its legal status or letting its development,what the government should do is to use legal framework to effectively monitor the possible risk. It's the practical and effective method to safeguard the legitimate interests of the bitcoin users.