In our country, the current situation and policies regarding Bitcoin trading have always been a hot topic of concern for the public and investors. Since September 2021, when the People's Bank of China and ten other departments jointly issued the 'Notice on Further Preventing and Disposing of Risks in Virtual Currency Trading Speculation' (hereinafter referred to as the '924 Notice'), China has implemented strict regulatory measures on trading activities of virtual currencies such as Bitcoin. The introduction of this policy has not only had a profound impact on the domestic Bitcoin market but has also sparked widespread social discussion and attention.
From a policy perspective, the 924 Notice clearly states that virtual currencies do not have the legal status equivalent to that of legal tender, and no organization or individual may issue, sell, or purchase virtual currencies within China. This means that trading activities involving Bitcoin or other virtual currencies are strictly restricted within China. Additionally, the notice emphasizes that overseas virtual currency exchanges must not provide services to residents within China, further cutting off domestic investors' avenues to participate in virtual currency trading.
Despite the strict policies, some individuals still attempt to evade regulation through various means to engage in trading activities of virtual currencies such as Bitcoin. This behavior not only violates national laws and regulations but also increases the risk to personal and family asset security. Therefore, regulatory authorities have been strengthening their crackdown on virtual currency trading activities to maintain the stability and order of the financial market.
Why does China prohibit trading of virtual currencies such as Bitcoin? There are multiple reasons behind this. On the one hand, the price fluctuations of virtual currencies like Bitcoin are enormous, and the investment risks are extremely high. For ordinary investors lacking professional knowledge and risk tolerance, participating in such trading can easily lead to losses. On the other hand, virtual currency trading activities often involve illegal behaviors such as money laundering and fraud, posing serious security risks to society. Therefore, in order to protect the legitimate rights and interests of the general public and the public interest, it is necessary for the Chinese government to strictly regulate such trading activities.
Of course, we must also recognize that although China has banned trading activities of virtual currencies such as Bitcoin, it does not mean that these currencies themselves are illegal. In fact, Bitcoin, as a decentralized digital currency technology, has garnered widespread attention and application globally. Many countries and regions are actively exploring how to apply this technology in finance, payments, and other fields to improve transaction efficiency and reduce costs. Therefore, we cannot simply equate virtual currencies like Bitcoin with illegal items or scams.
We also need to note that although China has banned trading activities of virtual currencies such as Bitcoin, this does not mean that domestic investors cannot access such assets. In fact, with the continuous development of global financial markets and the increasing degree of openness, more and more investors are starting to pay attention to investment opportunities in overseas markets. They can participate in international financial markets through legal channels and methods, achieving diversification and value preservation of their assets.
China's prohibition of trading activities involving Bitcoin and other virtual currencies is based on multiple considerations and trade-offs. Although this policy has caused some inconvenience and losses to certain investors, in the long run, it is beneficial for maintaining the stability and order of the financial market and protecting the legitimate rights and interests of the general public. At the same time, we should also recognize that Bitcoin and other virtual currencies, as a new form of digital assets, still have broad prospects and potential for application and development globally. Therefore, we should maintain a rational and objective attitude towards this issue, recognizing both the risks and challenges as well as the opportunities and development space.
