People's Daily Overseas Edition: Bitcoin Does Not Have the "Legal Status" of Currency

Abstract : For the nature of Bitcoin, China's regulatory authorities have made clear judgments.

ChainDD
ChainDD

Mar 24

On March 24, People's Daily Overseas Edition published an article "Bitcoin Rush too High, Pay Attention on Risks".

The article mentioned that Bitcoin did not have a "legal status" as fiat currency. For the nature of Bitcoin, China's regulatory authorities have made clear judgments. "The Notice on Prevention of Bitcoin Risks", issued in 2013, clearly pointed out that Bitcoin was not issued by the monetary authority. "It has no legal compensation and mandatory monetary attributes and it is not a real currency."

In terms of Bitcoin's nature, it could be defined as a specific virtual commodity, which did not have the same legal status as currency and cannot and should not be used as currency in the market. However, as a kind of commodity trading on the Internet, ordinary residents have the freedom to participate in Bitcoin trading at their own risk.

Many people in the cryptocurrency industry said that if Bitcoin was used as an investment commodity or financial product, it was necessary to pay close attention to the relevant laws, regulations and policies of various countries because any change in regulatory environment and other external factors would directly affect the price trend of Bitcoin.

In addition, the relevant authorities also remind investors that they should prevent some illegal elements from cheating or illegally raising funds by using Bitcoin. Investors should not blindly believe in inflated promises. They should establish a correct investment philosophy and effectively improve their risk awareness.

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