Legal Analysis Of Bitcoin

In order to replace current monetary system, Satoshi Nakamoto inventedBitcoin, as a kind of financial innovation on the internet, its uniqueness causeslots of problems on law, and challenges countries’ ifnancial regulation and legalregulation. The purpose of this article is to clear the legal nature of Bitcoin andpropose countermeasures to response Bitcoin by drawing measures of foreigncountries.Firstly, this article elaborates the uniqueness of Bitcoin from two aspects:development background and operating mechanism, summarizes series legalproblems caused by Bitcoin’s uniqueness, such as challenging our country’s taxsystem and the terms of central bank, bringing out new kinds of crimes, lawapplies blank and regulatory problems.Secondly, this article elaborates measures of foreign countries and ourcountry, and leaves comments from positive and negative two aspects. On thedissertation of foreign countries’ measures, reflects American verdict which saysBitcoin is a kind of legal currency, and concludes Bitcoin isn’t a legal currencyby legal analysis. On the dissertation of our country’s measures, analyses positivesignificances and deficiencies of "Notice on guard against the risk of Bitcoin”，and concludes Bitcoin is a kind of virtual property by legal analysis.Lastly, propose measures to response Bitcoin based on the revelations getfrom the measures of foreign countries and central bank’s notice, these measuresincluding: levy taxes on Bitcoin transaction; make special law on virtual propertyprotection; strengthen the centrality of Bitcoin; fight against Bitcoin undergroundtrading; strengthen the international cooperation to fight against Bitcoin crimes.