Comparative Reserch On Regulation Of Bitcoin

Bitcoin is a decentralized virtual currency which relies on peer to peer network. The Bitcoin transaction happens without the limitation of time, places or amounts. It has been proved by the international market that Bitcoin can be worked as an alternative payment system in daily life. Besides, Bitcoin can also easily exchanges into several fait currencies. However, Bitcoin network is still a young technology, and the Bitcoin-related markets are not well-developed. There are some risks exist in Bitcoin transactions. Therefore, it is necessary to have a clear regulatory scheme for Bitcoin. But most countries are still trying to find a perfect way to regulate Bitcoin and this kind of new virtual currency.Bitcoin will not replace fait currencies in a short term. But it is likely to co-exist with fait currencies. The regulation of Bitcoin in United States becomes clear recently, which sets a good example for China to learn from it. The People’s Bank of China(PBOC) thinks Bitcoin is problematic, mainly because the volatility of its exchange rates. The PBOC issued a notice on the relevant issue of preventing risks associate with Bitcoin, which is not solving the problem fundamentally.The recent development trend shows that the Bitcoin is important because it can be used in real life. Cutting the connection between Bitcoin and traditional financial institution cannot be a permanent solution. In order to minimize the risks in Bitcoin transactions, protecting the stability of finance and customers’ interests, it is necessary to build a complete regulatory scheme for Bitcoin.This thesis contains four chapters. Chapter I discusses what is Bitcoin, the way Bitcoin works and its legal status. Chapter II walks through the regulatory scheme in United States. Chapter III analyzes the People’s Bank of China notice subject on regulation of Bitcoin. Chapter IV provides several suggestions on regulation of Bitcoin in next phrase.