Research On The Regulation Of Digital Currency-Exploration For The Balance Between Freedom And Control

Although the life of digital currency is short,it attracts people's vision with the rapid growth of value and has become popular in the world,which has become the hottest topic of Internet finance.As all kinds of different concepts of digital currency quietly involved in the financial field,it attracted attention of regulator.The author summarizes five regulation objectives,that reduce the average social transaction cost,accelerate the fairness of transaction,optimize the allocation of resources,prevent the technical violence and prevent moral hazard.The regulation of Chinese government has made a sound twice,which has influence to Asia,even the whole world digital currency and the pattern of related industries.The conditional permit in 2013 that lax regulation causes China digital currency prosperity,not only the trading volume ranked first in Asia,but also the production of the mining machines and the alliance of mining pool is ranked first in the world.When a total ban in 2017,strict regulation forced China digital currency industry relocated.The online trading platform moved to a more relaxed regulatory region,and the production of the mining machines and factory are gradually to overseas migration.In the meantime,the Asian pattern changed heavily.South Korea and Japan become the most active trading area of digital currency of Asia.Russia attracts businesses or individuals to settle with low electricity and low factory rent cost.While Chinese people did not withdraw completely from the digital currency,so that produce a regulatory gap.As another dimension of supervision,Justice have their own attitudes,also influenced by the current regulatory policy,which resulting in the same case,citing the same regulations,but get the opposite judgment.The Judicial dilemma needs scientific and definite regulatory system to cooperate and to solve.The foreign experience can also be used for reference.That the double-way regulation model of the United States,the British regulatory sandbox model and the licence model of Japan can all be studied.The author puts forward four kinds of paths.The currency regulation issued by the central bank digital currency(CBDB),separates CBDB and any private digital currency.Seemingly only focused on the CBDB,actually had the radiation to the private digital currency.Regulation of code,which function agents by machine,to achieve directional and standardizational supervision.Regulation of P2P(peer to peer),no longer rely on a center,while makes any stakeholders as regulators possibly.Structural regulation based on securities regulation,in the transitional period,focus on the two risk concentrated that network platform and start-up companies.As the guide of the nature of the risk,establish relationship with the existing regulatory system and digital currency.Technology-driven regulation must be a trend in the future,but which path can be popularized ultimately requires scientific practice.At the end of the article,author bring social psychology of postmodernism behind the trend of decentralization,which is of great importance to the understanding of the regulation of digital currency.The balance of innovation and risk management needs to be explored by regulators,which is the inexhaustible source of effective regulation.