Bitcoin regulation: blocking as sparse
In May 2017, due to the “WannaCry” virus infection of multi computer, and asked the blackmailer to bitcoin as ransom payment, the global bitcoin has once again become the focus of public opinion. However, the virus itself and bitcoin is not much, just happen to be a bitcoin ransom “medium”. Coins and other digital assets is a new thing in the field of science and technology since 2009, the financial clout, there is a corresponding risk and misunderstanding. Therefore, the government should timely Chinese form regulatory ideas, reasonable risk prevention, encourage financial innovation.
A multi-faceted, bitcoin
The underlying technology block chain bitcoin is a kind of high efficiency and low cost value transfer and financial transactions, is expected to enhance the efficiency of the financial sector, to bring about change in many industries. Bitcoin is an efficient online payment tool. These technologies should be encouraged. At the same time, bitcoin and other digital assets or an investment product, may become a digital gold. According to the central bank in 2013 2017 through the relevant documents and “general principles of civil law”, bitcoin virtual goods special, belonging to the network virtual property legal. Therefore, these digital assets transaction should be standardized, in order to protect the rights and interests of the owners and the stability of financial order.
The versatility of bitcoin, implies the need for differentiated supervision. The network payment tool, bitcoin and underlying technology used to create social value of the scene, such as reducing the cost of global cross-border payment or raise public support block industry chain innovation, deserve support; bitcoin is applied to illegal scenes, such as money laundering or illegal fund-raising, should be severely hit.
Therefore, only to see the side of bitcoin advanced technology, ignoring the risk, even laissez faire blindly support bitcoin free development, or see only one bitcoin risk, regardless of the other attributes, the implementation of rough type pressure regulation, are not the attitude of the era of global network interconnection.
Two, digital assets and national strategic significance
According to the recent trend of our study, the blockchain is very likely to become the general technology of the global financial market, digital asset blockchain is expected to change the global asset structure based on. Gold, silver and other precious metals and traditional reserve currencies, there may be some digital assets as the representative of bitcoin alternative.
Therefore, to encourage the development of Chinese block chain and coins and other digital assets, with the national strategic significance.
First, the future development of the financial technology standard, to grasp the high. Chinese is the Internet application of power, but not the power of Internet technology, Internet technology is the American Standard setters. The blockchain future may become the technical standard of the financial industry, the gap between Chinese in this aspect of the development and application of the United States and Europe have no basis to seize the highest point.
Second, to control the global digital asset pricing. Gold is a global reserve currency, China gold production and trading power, but the pricing of gold in london. In the future global asset pricing, Chinese should not give up the opportunity. The United States and Japan and other countries have bitcoin transactions into the regulatory agency, Japan admits bitcoin as a means of payment, the German private currency even recognized bitcoin, the open field of vision, is worth thinking and reference China regulators, to seize the initiative in the future pattern of digital assets.
Third, boost the internationalization of RMB, enhance the international influence, realize the dream. With the help of block chain and digital assets and other financial technology, the internationalization of RMB can accelerate the realization of the corner overtaking, challenge the dollar’s international hegemony. Take the lead in ASEAN, “The Belt and Road” Chinese leading regional organizations to use RMB as the settlement currency, the rapid increase of China international influence and financial clout.
Finally, coins and other digital assets and block chain is still in the early stages of development, the future has many possible applications. Bitcoin and other digital assets is currently the most mature application block chain, the demonstration effect and the test value is very strong, has greatly promoted the development of the block, chain technology and prosperity. Chinese actively follow up the classification regulation at this stage should be to harm, not only keep the new China, leading technology and financial risk prevention.
Several models of three, bitcoin regulatory
Bitcoin itself is to the center of the characteristics, therefore, the direct supervision of bitcoin is difficult. But in the ecological chain bitcoin, there are some central institutions, the center of the institutions into the scope of regulation, supervision is equivalent to have a suitable starting point”. We believe that the domestic practice, the most appropriate starting point, none other than the non coins and other digital asset trading mechanism.
Bitcoin formed ecological chain around the generation, storage, exchange and application. In China, the most extensive social impact of transactions. In the trading process, bitcoin has the typical stakeholders. The risk of trading institutions produced, including money laundering, price volatility, market manipulation, information disclosure, trading institutions run away and hacker attacks and so on. Therefore, in order to protect the interests of traders, maintaining social stability and national financial order in the bitcoin industry chain, the trading institutions into the scope of supervision.
There are three kinds of supervision mode of trading institutions, one is to let things drift. Just in the transaction institution for two or three years, this mode had been widely. In the regulatory vacuum, trading mechanism with great risk. This is the basic model in recent years many give up. The two is included in the regulation, which is the current mainstream. The United States and Japan has issued regulatory rules, South Korea and even made a number of policies to support the development of bitcoin. In the implementation of supervision, such as transaction mechanism control volume (currency) run away or hackers bitcoin theft incidents rarely heard, suggesting that regulation has significant effect. The three is a direct ban bitcoin transaction mechanism. On the surface, this extreme regulatory pattern seems to receive “all down”, but may lead to greater negative effect.
Four negative effects, ban bitcoin transaction mechanism
The trading ban regulations to carry out the corresponding business, will lead to a lot of over-the-counter (OTC). From February 2017 to May, in order to meet the needs of the construction of compliance, China three bitcoin trading institutions suspended bitcoin withdrawals. This time, all the money market Chinese spot bit mostly through OTC transactions. The central bank banned trading institutions to provide financing currency business for customers, but also the emergence of the so-called “off with capital” service, which is another version of the “OTC margin”. The private transactions from regulators notice, “lawless”, may be mixed with money laundering, evasion and other illegal acts. However, this behavior is spread in the country, regulators can hardly detect and supervision.
The regular trading institutions to strictly implement anti money laundering measures, which belongs to the “net” in the currency trading market, the line on a personal transaction, OTC do not strictly enforce the anti money laundering measures and intends to provide services for illegal trading institutions, belongs to the “dark net”.
From the regular trading mechanism, given bitcoin to the center of the characteristics, it is difficult to doomed because regulators decree in reality was completely banned. As long as the investment demand, bitcoin transactions were forced to free from the finite number of formal institutions, enter the OTC, such as sparks of fire, Liaoyuan incarnation 1100, on both sides of the Yellow River on both sides of the Changjiang River. But objectively become ban bitcoin transactions into the “booster dark net”.
The potential hazards include: government supervision difficult exponential rise, after all, tens of thousands of individual trading supervision difficulty, far more than the number of trading regulatory agencies limited; lost due to convenient regulation “fingers”, “dark net” will become more active, legitimate investment demand forced into the black market, the objective may increase illegal transactions, reduce illegal transaction cost; “dark net” the lack of effective supervision, the legitimate rights and interests of traders can not be guaranteed, such as transaction by means of evasion, volume (currency) run away and the corresponding fraud will become increasingly rampant, it will inevitably lead to more conflicts, to affect social stability.
In conclusion, the corresponding regulatory bitcoin, our conclusion is: blocking as sparse.
In five, Chinese supervision
Based on long-term field investigation and thinking, we think, for bitcoin trading institutions, China may take the following measures.
First of all, the customer and transaction mechanism of funds and bitcoin should be effective isolation, to prevent unauthorized trading institutions misappropriation of funds or bitcoin, even Juankuan run away the risk (currency). Regulators can promote the transaction mechanism of customer funds depository bank, in the technical conditions are ripe, by an independent third party hosting customers stored in digital assets transaction mechanism. Qualified traders strictly set standards, testing the ability to bear risk traders, trading mechanism should be a clear risk to traders that.
Secondly, the regulators can learn from the British “regulatory mechanism sandbox”. First, regulators selected quasi trading institutions participate in the innovation of the test; second, regulators choose qualified traders, and transaction institution intends to participate in setting traders rights protection plan; thirdly, based on the screening of qualified trading institutions, trading institutions and regulators allow ginseng test to launch innovative products and services to traders at last; regulators, according to the test results, such as the implementation of anti money laundering, the implementation of the anti evasion situation, identify the user status, risk disclosure, disclosure of information, network security standards, promoting industry self-regulation guidelines and regulatory policy, in a limited period of time, finally through the trading mechanism testing regulators issued license, allowing it to social sustainable operation. By this way, promote the development of new industry digital asset trading, and against all kinds of risks.