Why is Bitcoin not illegal (Why is Bitcoin not regulated)?

08/17/2023 10:32 • Metaverse Matters • 90 views

Why is Bitcoin not illegal? Why is the issuance and trading of Bitcoin not bound by laws and regulations?

Today, let’s take a look at the relevant policies of Bitcoin in our country and the trends of its future development.

1. Prohibit Bitcoin mining to avoid being deceived;

2. Yao Qian, Director of the National Financial Administration: Strengthen regulation of blockchain technology applications;

3. Director of China Banking Law Research Association: Incorporate virtual currency into anti-money laundering control;

4. The central bank will actively promote the pilot work of legal digital RMB;

5. The Shanghai Pudong Development Court publicly pronounced on the interpretation of “Several Issues concerning the Application of Laws in the Trial of Criminal Cases of Illegal Fundraising by Shanghai Intermediate People’s Procuratorate”;

6. Li Lihui, a representative of the National People’s Congress, proposed the “Notice on Preventing the Risks of Token Financing,” stating, “At present, there is no need to avoid market fluctuations through this method.”

Why is Bitcoin not regulated

During the rise of Bitcoin, US regulatory agencies have cracked down on the digital asset industry. US Treasury Secretary Janet Yellen recently announced the ban on using cryptocurrencies as a means of payment, which is the first time the government has recognized it as a legal form of electronic currency and subjected it to strict scrutiny. “Is Bitcoin an unregulated financial product? Is it regulated like other virtual commodities?” This makes people suspicious. But what we can be sure of is that Bitcoin does not comply with the US anti-money laundering and KYC regulations.”

In fact, because the US Securities and Exchange Commission (SEC) has approved Bitwise Investments’ issuance of Bitcoin ETF – this means that it will not be allowed to directly purchase Bitcoin. Nevertheless, if a new filing that is approved and submitted through the SEC, this issue may be resolved: “SEC believes these funds will be held in cash or stocks and will be sold to qualified investors at the appropriate time.” Why is there no explicit support for Bitcoin ETF? The US Securities and Exchange Commission (SEC) is currently investigating whether there is a viable solution to protect investors from fraud, but they also point out that exchanges should comply with all applicable legal requirements according to the Bank Secrecy Act and the “Investment Contract Law.” (CryptoNewsFlash)

In addition, The Wall Street Journal reported earlier this week that “in the two years before the launch of the first Bitcoin futures contract in the US, many market participants began considering adding Bitcoin to their portfolios. However, when it comes to cryptocurrencies, some concerns have been raised,” he added.

Original source: ambcrypto; Compiled and translated by Blockchain Knight; Copyright of the English version belongs to the original author, for Chinese reprint please contact the editor.

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Why is Bitcoin not illegal (Why is Bitcoin not regulated)?

Why is Bitcoin not regulated

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