Is it illegal to buy Bitcoin? How to buy Bitcoin? Take Huobi as an example

Recently, Bitcoin has been soaring, with its price approaching its historical high of $20,000, attracting widespread attention.

An important reason for the surge in Bitcoin prices is that foreign financial institutions have aggressively purchased Bitcoin, directly boosting prices in the market. On the other hand, the recognition of Bitcoin by traditional finance has expanded consensus.

Bitcoin is considered digital gold because of its decentralization, peer-to-peer payment, immutability, limited quantity and anonymity. Currently, traditional financial institutions are heavily involved in the Bitcoin market, which has raised a new dimension to its future value. It should be noted that Bitcoin can be divided into 100 million shares, and the smallest unit is 1 satoshi. Assuming that in the next 20 years, the price of the smallest satoshi of Bitcoin is equal to the price of the cheapest Japanese yen of the International Monetary Fund, then 20 years later, at the current exchange rate, the price of Bitcoin may rise to more than 6 million RMB. Therefore, it is not uncommon for institutions to intervene heavily, and the price dimension of Bitcoin has changed.

The foreign Bitcoin market is developing rapidly, and many Chinese investors also hope to participate. However, many Chinese investors are concerned about several issues. First, is it illegal to trade Bitcoin? Second, how to buy Bitcoin? Let us answer them one by one.

Is it illegal to buy Bitcoin?

First of all, trading Bitcoin is legally protected. The clearest legal document on Bitcoin in China is the "Notice on Preventing Bitcoin Risks" issued by the central bank and five other ministries in January 2014. The "Notice" clearly defines that "Bitcoin should be a specific virtual commodity in nature."

The "Notice" points out that "Internet sites that provide Bitcoin registration, trading and other services should earnestly fulfill their anti-money laundering obligations, identify users, and require users to register with real names, register their names, ID numbers and other information. Financial institutions, payment institutions and Internet sites that provide Bitcoin registration, trading and other services should immediately report to the China Anti-Money Laundering Monitoring and Analysis Center if they find suspicious transactions related to Bitcoin and other virtual commodities, and cooperate with the People's Bank of China's anti-money laundering investigations; if they find clues of criminal activities such as fraud, gambling, money laundering using Bitcoin, they should report to the public security organs in a timely manner." This paragraph is particularly important, pointing out that websites that provide Bitcoin registration and trading services are legally operated and are also required to support anti-money laundering and anti-fraud work.

From this passage, we can see that the Chinese government is very far-sighted and realized very early that platforms that provide Bitcoin trading services are important assistants in combating money laundering and fraud crimes. Huobi previously launched the "Astrology System" and carried out relevant exchanges and cooperation with police in Putian, Fujian, Changsha, Hunan, Luoyang, Henan, etc., providing important data for judicial organs in data analysis, evidence collection, and fund tracking in blockchain fraud, money laundering and other cases. For this reason, many local police sent thank-you letters or made silk banners to Huobi.

The reason why Huobi does such a large amount of work is that it is objectively fulfilling the obligations in the "Notice" and needs to support anti-money laundering, anti-fraud and other work.

The "Notice on Preventing Bitcoin Risks" has clearly stated the legality of trading Bitcoin. Buying Bitcoin is legal, and trading platforms also need to fulfill their obligations to support anti-money laundering, anti-fraud, etc.

How to Buy Bitcoin

Many traders do not know the process of buying and trading Bitcoin. Let’s take Huobi trading platform as an example to see the process of buying Bitcoin.

First, you need to register a Huobi account: register an account on the Huobi Global Station official website, fill in the registration information, and complete the real-name authentication.

When all the information is complete, click "Buy" on the homepage to directly enter the "One-click Purchase" transaction page, or click "Buy Coins" to jump to the following transaction interface:

On this page,

1. Select Bitcoin BTC, and click "Buy BTC" according to different objects such as advertiser, price, payment method, etc.

2. Enter the amount/quantity you want to purchase and click "Place Order".

3. On the order details page, confirm the payment amount (total price) and payment method.

The "One-click Coin Purchase" function is recommended here. For small-amount digital assets, including BTC and USDT, you don't need to select merchants in the trading area. Just click one-click purchase and the system will automatically assign a partner. Bank cards, Alipay and WeChat can all be used. It is fast and convenient, with zero transaction fees, which can greatly improve the efficiency of users' small-amount purchases of digital assets.

Go to the following page:

Fill in the amount you want to buy. Select the payment method and click the buy button. Transfer the money to the other party within the time limit. After the transfer, please be sure to click "Paid".

(Please note that you need to transfer the money directly to the seller through online banking/mobile banking, Alipay, or WeChat according to the seller's payment method. If the money has been transferred to the seller, do not click "Cancel Transaction" unless the payment account has received the seller's refund.)

4. The seller will release the coins after confirming receipt of payment. The purchased coins will be stored in the "Fiat Currency Account" under the "Assets" column.

5. After receiving the coins, you can transfer the coins from the "fiat currency account" to the "coin-to-coin account". Only in this way can you conduct "coin-to-coin transactions".