Research on Legal Governance Dilemmas and Supervision Paths of Cryptocurrencies in China

Abstract

Cryptocurrencies originate from critical reflections on the traditional monetary system. Supported by blockchain technology, they break the shackles of the traditional financial system via decentralization. While cryptocurrencies bring prospects for financial innovation, they also induce latent risks including market volatility and cross-border regulatory conflicts. Taking cryptocurrencies as the research object, this paper elaborates on their basic theories, clarifies their asset attribute rather than legal tender, and identifies decentralization as their core feature. It sorts out China’s existing financial supervision practices and the prominent dilemmas of legal governance triggered by cryptocurrencies, and compares differentiated regulatory systems of the European Union, Japan and the United States. Finally, this paper puts forward targeted legal governance paths compatible with China’s national conditions from three dimensions: clarifying supervision responsibilities, optimizing tax collection and administration, and tackling stablecoin risks, so as to provide theoretical support and practical references for promoting law-based governance of the socialist financial system with Chinese characteristics.