Research On Legal Supervision Of Virtual Currency

Virtual currency was born in 2008.In more than ten years,the virtual currency has gone from being "worthless" at the beginning to the representative of the current virtual currency-the highest single price of Bitcoin exceeded $61,000,attracting countless investors.Race to enter the market.Although the people’s enthusiasm for virtual currencies is high,Chinese legislators seem to ignore this field that may become the next world power to compete in technology.Over the past ten years of development of virtual currency in China,from the initial unsupervised,non-protection,nonprohibition,and non-support in the mid-term,to the total ban on the use of virtual currency for financing,the glorious era of virtual currency in China has become a thing of the past..However,as the value of virtual currency has risen in the past two years,many investors have once again entered the virtual currency market to seek investment opportunities.However,when disputes occurred,different courts gave different judgments on the nature of virtual currency.The reason is that the current situation in my country The regulations do not clearly define the legal nature of virtual currency.The supervision of virtual currency seems to be a blank area.While the United States,Japan and other countries are accelerating the deployment of virtual currencies,my country’s regulators seem to have no interest in the supervision of the virtual currency market.Except for the two documents jointly issued by multiple departments in 2013 and 2017,there is no official document about virtual currency in our country.This has caused the virtual currency transaction volume to continue to rise,but the law has not responded in a timely manner.Once a transaction dispute arises,it seems difficult to convince the public just by relying on the regulatory policy of "no protection,no prohibition,and no support",and it is also difficult for case judges to obtain clear guidance on the application of the law.In addition,the ambiguity of the regulatory authorities has led to the inability of the regulatory agencies to respond in the first place when large-scale incidents occur in virtual currencies to prevent further losses.The anonymization and platform-less transaction mode of virtual currency has led to virtual currency becoming a natural tax evasion tool.At the moment when the value of virtual currency is rising day by day,it is necessary to analyze and standardize the above three issues,whether it is from a theoretical or practical perspective.This article is divided into four parts:The first part explains the basic theory of virtual currency.Firstly,it sorts out the related concepts of virtual currency;secondly,introduces the characteristics,advantages and disadvantages of virtual currency and comparison of similar concepts.Finally,it briefly introduces the development process of virtual currency.The first half of the second part introduces the past practice and existing legal problems in the field of virtual currency in my country.In the past practice part,it mainly introduces the development history of virtual currency in our country.There are three main problems:one is the unclear definition of the attributes of virtual currency;the second is that there is no clear regulatory agency for virtual currency;the third is the lack of clear regulations on the taxation of virtual currency.The second half analyzes the current real risks of insufficient legal supervision of virtual currency in my country and the necessity of strengthening legal supervision.The third part mainly introduces the virtual currency legal supervision practice and legislation in the United States and Japan to provide a reference for the construction of my country’s virtual currency legal supervision system.In the U.S.virtual currency supervision practice section,it briefly introduces the U.S.regulatory agencies for virtual currency and introduces the case of the legal value of virtual currency in the United States through the method of "interpretation of the law" and the most important case in the history of U.S.virtual currency supervision.A representative event-The DAO event,which clarified the security attributes of virtual tokens in the United States.Japan mainly relies on legislative regulations in the field of virtual currency.Through the amendment of the "Fund Settlement Algorithm",the registration,transaction,and reporting mechanisms of virtual currency institutions have been subject to legislative requirements.In order to facilitate practical operations,the above countries have adopted the method of incorporating virtual currency into existing taxes for taxation.The fourth part is to put forward regulatory suggestions suitable for my country’s national conditions through the observation of the United States and Japan’s systems.First,clarify the securities attributes of virtual currencies in accordance with the principle of substance over form.Subsequently,a supervisory authority led by the China Securities Regulatory Commission was established and a specific supervisory system design for virtual currency merchants was proposed.Finally,a brief suggestion for perfecting the taxation of virtual currency is put forward.