As regulation is underway, the construction of cryptocurrency legal frameworks in many countries is accelerating

In 2008, Satoshi Nakamoto published the paper "Bitcoin: A Peer-to-Peer Electronic Cash System", which provided the basis for the invention of blockchain technology and encrypted digital currency. The Bitcoin system has been running for more than ten years, but the legality and policies of Bitcoin in different countries and regions are still different.

(Bitcoin price changes)

(Bitcoin market value changes)

What is Bitcoin? This paper mentions several principles of Bitcoin.

A purely peer-to-peer electronic cash system that enables online payments to be initiated and paid directly from one person to another without going through any financial institution;

Double spending can be prevented without the support of a trusted third party. The peer-to-peer network environment is a solution to double spending.

All transactions are timestamped and incorporated into an ever-expanding chain of proof-of-work based on a hash algorithm as a transaction record. Unless all proofs of work are completed again, the resulting transaction record cannot be modified;

The longest chain will serve not only as proof of the sequence of events that was observed, but also as proof that it came from the largest pool of CPU power. As long as the majority of CPU power is not controlled by nodes that are cooperating in an attack, then the longest chain will be generated that is longer than the attacker.

The system itself requires very little technical infrastructure. Nodes do their best to spread information throughout the network. Nodes can leave and rejoin the network at any time, and the longest proof of work will be used as proof of transactions that occurred during the period when the node was offline.

Based on the above characteristics, the Bitcoin network is feasible and can realize peer-to-peer transactions without the participation of a centralized party. Since the birth of Bitcoin, cryptocurrencies have developed rapidly. However, the use and trading of cryptocurrencies such as Bitcoin are accompanied by specific risks. For countries, they need to face the following two problems: First, the criminal issues involved in cryptocurrencies, including money laundering, black market payments, theft, fraud, tax evasion, etc. The other is that cryptocurrencies may affect monetary policy and financial stability. Therefore, regulatory authorities in various countries generally pay attention to the compliance and legality of Bitcoin transactions.

Currently, the financial regulatory authorities of major countries have four different attitudes towards Bitcoin. The first is to recognize or partially recognize the currency status of Bitcoin, represented by European countries such as El Salvador and Germany; the second is to only recognize the commodity attributes of Bitcoin, represented by China; the third is to completely ban Bitcoin, represented by Thailand; and the fourth is to wait and see cautiously, represented by India.

However, as Bitcoin gradually moves into mainstream society and as there has been a super bull market from last year to the beginning of this year, different countries and regions have adjusted their regulation of cryptocurrencies.

Europe

America

Asia