Study On The Legal Risk Regulation Of Virtual Currency In Investment

As money into the Internet era, in this virtual market, the emergence of electronic currency, virtual currency and other new payment tools, expanding the function of the currency and open a new era of Internet banking. From the beginning with a fiat currency exchange game currency to purchase the equipment in the virtual world, now each big BBS, community began to issue its own virtual currency, such as Tencent Q, Sina micro currency, the National People’s Congress Economic Forum coin, even all mobile app is not far behind. As a taxi company DIDI launched a "DI money", needless to say bitcoins, Litecoin to now emerged various competitive currency endlessly. At present, the Internet has many types of virtual currency, the rapid development of the virtual currency has become a new change in the Internet that can not be ignored. In the academic network virtual money currently defined differently, classification methods are difficult to cater for all tastes, only by distinguish the virtual money relatively clearly that the regulation of existing legal risk can be explored. There are three types of virtual currency, such as virtual currency, service network, virtual currency and virtual currency in investment. Virtual money in investment currently used mainly includes the bitcoin and all kinds of competitive currency, that emerged in recent years and has been developing quickly, bringing largest category of legal risk. As more and more investors has regarded it as a new point of investment, the new financial products have risks on many fields.This kind of virtual currency on the one hand in the virtual world as a part of the function of money, can be used in exchange for goods or services, on the other hand, as an investment tool, Such networks are considered as a network virtual goods and in our country at the present stage, but lack of the relevant regulatory measures, and the business environment is not mature enough, domestic and international laws and regulations for the specification of virtual money remains to be further improved. Under this kind of background, investment virtual currency has many legal risks.The main way to obtain virtual currency in investment are to do miners mining, do business acquisitions and in the trading platform for purchase or free access. Most of virtual money in investment is mining, virtual currency trading or crowdfunding.the circulation of virtual currency investment needs through all kinds of virtual currency trading platform, so the trading platform focus on the major risks, such as the technical risk, vicious competition risk, credit risk, and so on. These risks will harm to the investor’s property rights and interests. The crowdfunding involving virtual currency also has certain legal risks, may break the provisions of China’s laws and regulations on public offering and illegal fund-raising. In addition, virtual currency in investment is easy to be used as a tool for crime, mainly by pyramid selling, money laundering and other illegal or criminal acts.For the regulation of the risk, the relevant legislation and strengthen supervision to regulate this kind of virtual currency risk should be established, prohibit investment virtual money into the financial sector, and pay attention to relevant regulations of other countries and regions, keep an open regulatory attitude; establish a risk fund, a certain degree of compensation for accident the event or force majeure. As virtual currency crimes involving property infringement by investors; set up a network of virtual currency assets transaction management system to regulate uniformly of virtual currency trading platform. As the establishment of real name system in the network, virtual currency trading platform can make investors prove their own certain amount of virtual currency and can reduce the risk of trading platform. Crowdfunding involving virtual money should be in a general provisions and raise the transparency of supervision, for protect the interests of investors. In addition, investors should strengthen their awareness of investment, so that they can establish a correct concept of investment. Improve investor rights’awareness to protect investors’ interests is also needed.