With the rapid development of Internet technology, virtual currencies represented by Bitcoin have become a new financial proposition known to more and more people. Based on the special properties of such virtual currencies, such as decentralization, bookkeeping, constant quantity, internationalization and anti-inflation, many people continue to pursue virtual currencies.

First, El Salvador became the first country to "take the plunge", and then the Myanmar government announced that the stablecoin USDT is the official currency!

On September 7, 2021, El Salvador's bill to use Bitcoin as legal tender officially came into effect, making Bitcoin the country's legal tender. El Salvador has thus become the first country in the world to make virtual currency a legal tender, a world first. The bill allows Bitcoin to be used as a form of payment in all parts of the country. Salvadoran businesses will be required to accept digital currency in exchange for goods and services, and the government will also accept it to pay taxes.

On December 13, 2021, the Ministry of Finance and Investment of the National Unity Government (NUG), Myanmar's shadow government, issued an announcement on Facebook, announcing that the dollar-based stablecoin Tether (USDT) is the official currency for local use. The NUG Finance Minister said that the main reason for Tether's inclusion is "to be used domestically to facilitate and speed up current trade, services and payment systems."

In addition, many countries and regions are open to the use of virtual currencies.

United States: Releases crypto regulatory bill to encourage virtual currency payments

As the world's richest country and the one with the most developed market economy, the United States has always tacitly allowed the existence and experimentation of virtual currencies.

On June 7, the U.S. bipartisan bill officially released the Crypto Regulation Act, which favors the U.S. Commodity Futures Trading Commission (CFTC) as a regulator and eliminates tax concerns for users who use cryptocurrencies to purchase goods. The bill is the first attempt by the U.S. bipartisan party to establish a comprehensive regulatory framework for digital assets, aiming to bring stability and clarity to the cryptocurrency market and protect customers.

According to the requirements of the new bill, stablecoin issuers must hold highly liquid assets equal to all circulating stablecoins and publicly disclose their holdings. In addition, the bill stipulates that all crypto transactions below $200 are tax-free, and will establish new federal laws for stablecoins, small payment taxes, and the jurisdiction of regulators.

UK: Announces new crypto regulatory policy, focusing on stablecoins

The British government plans to announce a new regulatory system for the cryptocurrency market in the coming weeks, with a focus on stablecoins. John Glen, the UK Treasury's economic secretary, believes that the British government attaches great importance to the crypto market and related technologies, and will fully support the crypto asset market with an open attitude, from the policy and regulatory levels, so that the UK will take a leading position in the world's cryptocurrency field in the future.

Russia: Supporting Bitcoin Payments

According to public data, Russia is the world's third largest Bitcoin mining country, accounting for about 12% of the global crypto market. Cryptocurrency has also "joined" the war in the Russia-Ukraine dispute. On the one hand, Russia uses cryptocurrency to break through financial sanctions. On March 24, Pavel Zavalny, chairman of the Russian State Duma's National Energy Committee, said that Russia is willing to accept Bitcoin as a payment method for its natural resource exports.

Ukraine: Bitcoin legal status confirmed

According to Ukrainian media reports, the Ukrainian Verkhovna Rada (Ukrainian Parliament) passed the Virtual Assets Act, and virtual assets such as cryptocurrencies were officially legalized in the country. The Ukrainian bill stipulates that virtual assets cannot be used as a means of payment in the country, that is, they cannot be used as legal tender, but citizens can legally hold and trade them. In addition, companies in the crypto field need to obtain a license to operate in Ukraine, and banks will also open accounts for crypto companies.

In the current Russia-Ukraine dispute, Ukraine received donations through cryptocurrencies during the war, fully experiencing the importance of cryptocurrency's rapid response at special moments.

Japan: Amend the bill to protect digital currency users

On June 3, Japan passed an amendment to the Funds Settlement Act, making it officially a law. The law provides for the regulation of operators of digital currencies "stablecoins" that are linked to legal tender to stabilize value. Intermediary companies between issuing banks, trust banks and users will be subject to a registration system. This move aims to clarify the legal status of stablecoins and protect digital currency users.

South Korea: Plans to establish a cryptocurrency regulator

On June 1, due to the recent market turmoil caused by the Terra crash, South Korea plans to establish a digital asset committee to prevent similar incidents from happening. It is likely to become the world's first dedicated cryptocurrency regulator and may be independently responsible for controlling the country's cryptocurrency industry. South Korean media quoted a source from the National Power Party as saying that the agency "is expected to become a control center for policy making and regulation of the crypto asset industry."

India: Virtual currencies will be regulated by classification

According to media reports, the Securities and Exchange Board of India (SEBI) said that the decentralization of cryptocurrencies makes it difficult to protect investors and regulate this asset class. The regulator said: There is more than one cryptocurrency regulator and pointed out that the cryptocurrency industry may be regulated by different agencies.

SEBI stated: The Reserve Bank of India can regulate crypto trading platforms under the Foreign Exchange Management Act, and digital currencies will also serve as a bridge between foreign legal currencies and the Indian rupee.

Thailand: Building its first cryptocurrency mining farm

On June 4, Thai media reported that Mining Pro Co. Ltd will invest 170 million baht (nearly 5 million U.S. dollars) to build the first cryptocurrency mining farm in Thailand. The mine will be located in Bang Na and is expected to start operations in early 2023. The goal is to increase this figure to around 30 million U.S. dollars by the end of this year through sales.

Dubai: Cryptocurrency trading allowed

On June 12, Coinsfera, an over-the-counter cryptocurrency exchange in the Middle East, said it had opened its first physical Bitcoin store in downtown Dubai, allowing users to exchange cash or make bank transfers with various cryptocurrencies, including BTC, ETH, BCH and LTC.

In fact, in 2021, the Dubai World Trade Center Authority (DWTCA), UAE regulators, and the Securities and Commodities Authority have reached an agreement to support the regulation and trading of cryptocurrency assets in the Dubai Economic Free Zone. This new initiative establishes a framework that enables DWTCA to issue the necessary approvals and licenses for cryptocurrency-related financial activities. This marks the legal status of crypto activities in Dubai.

Singapore: Cryptocurrency transactions become mainstream and classified supervision is implemented

On May 12, Singapore cryptocurrency exchange Independent Reserve released its latest report, pointing out that 90% of respondents knew about cryptocurrency. In addition, 58% of respondents viewed Bitcoin as an investment asset or value storage, 15% viewed it as money, and 9% viewed it as a scam.

According to local regulatory policies, Singapore considers cryptocurrencies legal, but the regulatory approach is different from that of currencies. The Monetary Authority of Singapore divides cryptocurrencies into three categories: utility tokens, security tokens, and payment tokens.

In an interview with Lianhe Zaobao, Xie Fulai, co-president of the Singapore Blockchain Association, emphasized that the Monetary Authority of Singapore has set strict regulations on the risk management standards of cryptocurrency operators, allowing Singapore to become a leading and trusted cryptocurrency hub.

So what is the current status of virtual currency in our country?

Let's take a look at a piece of news first. On June 17, the Shanghai Fengxian Court WeChat official account recently released a case. The consumer used virtual currency to purchase a vehicle, and the court finally ruled that the contract was invalid. It is reported that the "Automobile Sales Contract" signed by Huang and a certain automobile company stipulated that the virtual currency Yulimi would be used as a monetary payment to purchase the car, but because the automobile company delayed delivery, Huang sued the automobile company to the court. Huang believed that Yulimi was a virtual commodity, and this case was of the nature of "goods for goods", which did not violate the prohibitive provisions, so the contract was valid.

According to the Announcement on Preventing Risks of Token Issuance and Financing issued and implemented in September 2017 by the People's Bank of China, the Central Cyberspace Affairs Commission, the Ministry of Industry and Information Technology, etc., it is stipulated that: Token issuance and financing refers to the financing subject raising so-called "virtual currencies" such as Bitcoin and Ethereum from investors through the illegal sale and circulation of tokens, which is essentially an act of illegal public financing without approval. The tokens or "virtual currencies" used in token issuance and financing are not issued by monetary authorities, do not have monetary attributes such as legal compensation and compulsion, do not have the same legal status as currency, and cannot and should not be circulated and used as currency in the market. All types of token issuance and financing activities shall be stopped immediately from the date of the announcement. Organizations and individuals that have completed token issuance and financing shall make arrangements for liquidation, reasonably protect the rights and interests of investors, and properly handle risks.

The court held that the essence of the "Automobile Sales Contract" was to use EURIM instead of legal tender for purchase transactions, which violated the above provisions. According to the provisions of my country's "Contract Law", if a contract violates the mandatory provisions of laws and administrative regulations, the contract is invalid. In the end, all of Huang's claims were rejected.

In recent years, under the myth of virtual currency creating instant wealth, a large number of investors followed suit and entered the market. They could make a fortune one second and lose everything the next. Because of this, my country has always adopted a tightening and strict regulatory policy towards virtual currency, firmly maintaining the stability of social financial order.

On December 5, 2013, the People's Bank of China and five other ministries and commissions issued the "Notice on Preventing Bitcoin Risks", which first clarified the nature of Bitcoin. The document pointed out that although Bitcoin is called currency, it does not have the attributes of currency such as legal compensation and compulsion, and is not a real currency. In terms of nature, Bitcoin is more like a specific virtual commodity. All financial institutions and payment institutions are not allowed to carry out Bitcoin-related businesses, and Bitcoin trading platforms need to register and file and accept strict supervision; on September 4, 2017, the People's Bank of China and seven other ministries and commissions issued the "Notice on Preventing the Risks of Token Issuance and Financing", clarifying that token issuance and financing activities are illegal and directly stopping ICO; in 2021, the central bank and ten other departments issued the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" and the National Development and Reform Commission and 11 other departments issued the "Notice on Rectifying Virtual Currency "Mining" Activities", which comprehensively cleared domestic virtual currency exchanges and promoted the comprehensive realization of the goal of "zeroing" virtual currency mining.
Based on the above cases and related documents, it can be seen that my country has denied the legal tender of virtual currency and has imposed strict controls on it, closing all trading platforms, not allowing virtual currency to be used as a tool for financing activities, and not allowing financial institutions and payment institutions to conduct business related to it. This is my country’s current attitude towards virtual currency.