2021-11-24 15:12


Economic Daily comment: strengthening the whole chain supervision of virtual currency


[Beijing Direct News Network November 24th] (China economic network)The roller coaster ride on the price of virtual currency is not uncommon, but judging from various signs, the "squid currency" that has become popular recently by a popular online drama is more like a "smashing" scam.

The issuer originally claimed that "squid coins" could be used to participate in multiple games, and the winning players could get more coins as rewards. However, before the game was officially opened, players waited for the news of the suspected issuer's departure. In just five minutes, the market value of millions of dollars evaporated, and the "squid money" in the hands of more than 40000 buyers became almost worthless. There is also a risk prompt issued by the exchange, saying that the currency is not the official certified IP of the online drama producer, but uses the same name.

At present, many coin circles follow the same routine: first, coinage, then packaging speculation, looking for investment, dealer trading and other means to make the coin price rise rapidly in the short term, and finally throw the coin at a high level for "harvest". These coin issuance projects seem to be chasing hot spots, but in fact they are for money arbitrage. Many projects are in a hurry to issue coins and the packaging is rough. Some do not mention the technical level at all, and others resort to fraud. Even the project documents are full of grammatical errors.

In fact, a so-called "currency" needs to be marketed by rubbing hot spots, which itself makes people feel absurd. It is generally believed that money, as a general equivalent, is essentially a credit contract to solve transaction liquidity. In order to realize its various functions, currency should have sufficient credit endorsement, such as national sovereignty, and pursue the basic stability of currency value. In contrast, virtual currency has no credit support and no stable price. Although it is called "currency", the buyer will still convert it into sovereign currency when he leaves the market. Therefore, the word "currency" is only a form. The essence of virtual currency is still an asset and has high risk.

The two characteristics of virtual currency make it easy to be used by speculators to engage in speculation and even illegal activities. First, such currencies generally have no real value support, so their price increases are greatly affected by market sentiment and are easy to become speculative targets; Second, anonymity, decentralization and peer-to-peer transactions make it difficult to clarify the identity of developers and to distinguish the monetary motivation of developers.

To some extent, virtual currency is like Pandora's magic box. Once opened, it becomes a hotbed for illegal acts such as fraud, MLM and money laundering. Similar illegal incidents occur frequently, which not only seriously endanger the safety of personal property, but also greatly disrupt the economic and financial order. For ordinary people, the only way to avoid being cheated is not to participate in the transaction. For the regulatory authorities, it is quite important that there is no gap and room for supervision.

In September this year, the people's Bank of China and other departments issued a notice to clarify that the business activities related to virtual currency belong to illegal financial activities, and build the whole chain supervision of virtual currency. The notice also made it clear that illegal financial activities such as carrying out the exchange business between legal tender and virtual currency, the exchange business between virtual currencies, buying and selling virtual currency as a central counterparty, and providing information intermediary and pricing services for virtual currency transactions are strictly prohibited and resolutely banned according to law.

Because the virtual currency trading and issuing platform is overseas, it brings a lot of inconvenience to its related activities. Next, the regulatory authorities should continue to block the channels of overseas virtual currency landing in China, and take comprehensive measures from cutting off the payment channels, disposing of relevant websites, strengthening the registration and advertising management of relevant market subjects, so as to hide the possible illegal acts of virtual currency in the "magic box" for a long time.