Why Buy Mining Machines for Cryptocurrency Trading (Why Cryptocurrency Trading is Illegal)

Why Buy Mining Machines for Cryptocurrency Trading? Why Buy Mining Machines for Cryptocurrency Trading? Why Buy Mining Machines for Cryptocurrency Trading?

When it comes to investment, many people want to make money with Bitcoin. But when the price starts to rise, they feel that it has no value. And when the price goes up, they become more optimistic and fantasize about the future development. Therefore, they choose to purchase a suitable model of mining machine for mining. But how can ordinary investors participate in mining? Today, Wanglian Technology will explore this for you~

Why Cryptocurrency Trading is Illegal

Editor’s note: This article is from HiveEcon, author: Yuanshang, authorized reprint from Odaily Planet Daily.

Recently, under the guidance of the business management department of the People’s Bank of China, the central bank, the China Banking and Insurance Regulatory Commission, and other seven departments jointly issued the “Notice on Preventing the Risk of Token Issuance Financing”, which clearly requires that the behavior of virtual currency “mining” is suspected of violating national financial laws and regulations. At the same time, it pointed out that no unit or individual shall conduct token sales activities under the name of illegal fundraising, network marketing, or fraud.

This move means that cryptocurrency trading in China still faces significant security risks and regulatory difficulties. However, from the perspective of relevant policies, there is still great uncertainty in the pricing of Bitcoin, Litecoin, and other cryptocurrencies – according to the China Securities Regulatory Commission, “This provision will be implemented from January 1, 2017. It prohibits the provision of legal currency exchange services to unlicensed platforms.” This is not an official acknowledgment. On the contrary, these regulations are aimed at behaviors such as raising funds through ICOs without obtaining licenses or being allowed to raise funds through the Internet. “In accordance with relevant national regulations, organize or participate in the establishment of an ICO project registration and filing system in accordance with laws and regulations.” This is a blockchain information service enterprise supervised by the Central Cyberspace Administration of China. The person in charge stated, “If a company raises dividends through domestic public listing, the stock price of this company will increase significantly.” According to statistics, the market value of stocks in 2017 was about 20 trillion yuan, and it only increased by 10% in the first three quarters of 2018. The first domestic national-level registered investment fund approved at the end of 2017 is called Tianhe Guoyun Fund. It officially started the public offering stage in early 2018 and plans to invest $50 million to establish a digital asset exchange.

Although some listed companies have now begun to apply to launch their own cryptocurrency products, there are no noteworthy new standards due to the lack of relevant qualifications. For example, Baidu and Alipay have announced that they will develop their applications for the B-side business. Many people even believe that they may be early investors in a certain startup project. So why would these institutions engage in encrypted cryptocurrency trading in a legal and compliant manner? Let’s first understand what “abnormal trading” is. Simply put, “abnormal trading” refers to trading activities without actual value, which is a typical form of gambling with the main purpose of obtaining huge profits. Secondly, such transactions are usually considered a form of gambling. Finally, specific goods and services are purchased in a certain way and then resold to achieve the purpose of money laundering, causing significant losses to the entire industry. Therefore, the so-called atypical transactions are also understood as criminal phenomena.

In general, the amounts involved are usually small, such as mentioned in the beginning, a white paper, with the image sourced from Weibo screenshots.

Of course, there are some specific rules involved:

1. By purchasing a certain amount of Bitcoin, one can receive corresponding interests and store them in the account. If someone can take away all the money,