On Legal Regulation Of Bitcoin

With fiercer global inflation as well as the rapid development of computer technology, one kind of currency with decentration to resist inflation has been invented. For a long time, there have been many disputes on the concepts and nature of virtual currency as well as different understanding about the functions of virtual currency. Moreover, many supervising departments, experts and scholars have had different interpretations for the financial risks of virtual currency. In order to promote the development of normative virtual currency, China has formulated or has been formulating many laws or supervising policies for it. However, the wave of bitcoin is sweeping over the world. Bitcoin is neither issued by the Central Bank nor supervised by the government. The supervision and legislation for bitcoin are emphasized in the world at present, and countries all over the world are faced with the impacts of bitcoin on their financial systems, such as speculation, money laundering, tax collection and tort.However, the legislation is always unsuitable to social reality. Owing to the sudden springing-up and rapid development of bitcoin, theoreticians have not done too many researches on such a newly sprouting thing. By explaining the concepts and the existing problems of bitcoin, from dialectic, rational and practical perspective, this paper makes an analysis on the existing laws for bitcoin, putting forward some reasonable opinions and providing references for relevant legislation.First, this paper introduces the origins, features as well as the legal status of bitcoin, pointing out some existing risks and problems. Second, it makes a study on the legal regulations for speculation activities, the legal regulations for the impacts of bitcoin on currency order, the legal regulations for money laundering, the legal regulations for tort as well as the legal regulations for tax avoidance, putting forward some specific suggestions.