A Study On Bitcoin Legal Regulation

As a kind of financial innovation on the internet, the Bitcoin has its unique operation mechanism, include the decentralization, anonymity, openness and the finiteness and so on. The uniqueness of Bitcoin causes lots of problems on law, and produces challenges for the financial regulation and the legal regulation. But it brings new ideas and great impact to our life at the same time. The purpose of this article is to explore that what the Bitcoin is, and clear the legal attribute of it. And then, propose countermeasures to response Bitcoin and strategies to solute the challenges which the Bitcoin brings to us in this develop rapidly several years.In the first part, this article introduces the uniqueness of Bitcoin in these aspects: its own operating mechanism, payment transaction and the development situation in the world. And this paper explains the uniqueness of Bitcoin, such as anonymity, decentralization, finiteness and divisibility, openness and so on. The second part, this article contrasts the current views of the monetary attribute of Bitcoin, and draws a conclusion that Bitcoin cannot be the real currency at this stage by discuss the currency essence, functions of currency and the relationship between Bitcoin and sovereignty currency. In the third part, this article elaborates the causes of the problems which exposed in the development at this current stage, as well as the impact of the existing regulation and the legal problems causes by the Bitcoin. The article illustrates the legal blank, difficult legal relief, trading risk caused by high speculative, money laundering and illegal transactions, the low barriers to entry and regulatory deficiencies of the trading platform. The fourth part, the article proposes the suggestions of regulate Bitcoin and solute the challenges and risks of it tentatively which direct at the existing and possible problems and challenges. These measures including: clear the attribute of currency, consider that the Bitcoin cannot be a kind of currency to circulation, it isn’t a real currency, and this article considers that Bitcoin can be a “object” in law, it could be a kind of property and can guarantee by the current law accord to the regulation so as to protect the legitimate right of those people who is possess Bitcoin, intensifying the construction of the guarantee and relief system, to ensure that the lawful rights and interests can be protected, making a standardization of the current trading platforms, strengthen the supervision of those trading platforms, and establishing a system for Bitcoin trading and improving the system of risk prevention and control, establishing the autonym system of Bitcoin trading, enhance the international interflow and cooperation, the trading monitoring information sharing, and building the basis of system of the crime fighting and the dispute solving international cooperation, improving the system of statistics.