Unlike all currencies, bitcoin is not issued by a specific monetary institution, but is generated by a large number of calculations according to a specific algorithm. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transaction behaviors, and uses cryptography design to ensure the security of all links in currency circulation. The biggest difference between Bitcoin and other virtual currencies is that its total amount is very limited and extremely scarce.
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Article 1 of the Announcement on Preventing the Financing Risks of Token Issuance accurately understands the essential attributes of the financing activities of token issuance. Token issuance financing refers to the so-called "virtual currency" that the financing subject raises from investors through the illegal sale and circulation of tokens. In essence, it is an unauthorized illegal public financing behavior, which is suspected of illegal selling of tokens, illegal issuance of securities, illegal fund-raising, financial fraud, pyramid schemes and other illegal and criminal activities.
Relevant departments will pay close attention to relevant developments, strengthen cooperation with judicial departments and local governments, strictly enforce the law according to the existing working mechanism, and resolutely control market chaos. If a suspected crime is found, it will be transferred to the judicial organs. Tokens or "virtual currency" used in token issuance financing are not issued by the monetary authorities, have no monetary attributes such as legal compensation and coercion, have no legal status equivalent to currency, and cannot and should not be used as currency in the market.
Article 2 No organization or individual may illegally engage in token issuance financing activities. From the date of this announcement, all kinds of token issuance financing activities will be stopped immediately. Institutions and individuals that have completed token issuance financing should make arrangements for repayment, reasonably protect the rights and interests of investors, and properly handle risks. The relevant departments will seriously investigate and deal with the illegal activities in the token issuance financing activities and completed token issuance financing projects that refuse to stop.
Baidu Encyclopedia-Bitcoin