1.What is Bitcoin?

Bitcoin is a distributed, peer-to-peer "cryptocurrency" system designed to allow

online users to process transactions through digital units of exchange called
Bitcoins. Started in 2009 by a mysterious programmer, Bitcoin has generated much
interest and controversy as a "third" currency and an alternative to government
currencies such as the US dollar or US dollar. euro or pure commodity currency
such as gold or silver coins. Bitcoin payments are processed through a network of
personal computers connected through a sharing scheme. Each transaction is
recorded simultaneously in a "blockchain" on each computer that updates and
informs all accounts.
Bitcoins are "mined" by computers through a process of solving increasingly
complex mathematical algorithms, or purchased in national standard currency and
placed into a "Bitcoin" wallet accessed via smartphones. smart or computer.
2. The Benefits of Bitcoin
User Anonymity
Bitcoin purchases are discrete. Unless a user voluntarily publishes his Bitcoin
transactions, his purchases are never linked to his personal identity, just like cash
purchases, and cannot be traced to him. In fact, the anonymous Bitcoin address
generated for the user to buy changes with each transaction.
No third party disruption
One of the most widely publicized benefits of Bitcoin is that governments, banks,
and other financial intermediaries have no way of disrupting users' transactions or
freezing Bitcoin accounts. The system is completely peer-to-peer; users experience
a greater degree of freedom than with national currencies.
Purchases are not taxed
Since there is no way for third parties to identify, track or intercept the transaction
depicted in Bitcoins, one of the main advantages of Bitcoin is that a sales tax is not
added to any purchases.
Very low transaction fees
Standard wire transfers and foreign purchases often involve exchange fees and
costs. Since Bitcoin transactions do not have an intermediary or government
involvement, transaction costs remain low. This can be a great advantage for
travelers. In addition, any transfer in Bitcoins will happen very quickly,
eliminating the inconvenience of typical authorization requirements and waiting
times.
Mobile payment
Like many online payment systems, Bitcoin users can pay for coins anywhere they
have an Internet connection. This means that buyers never have to go to a bank or
store to buy a product. However, unlike online payments made with U.S. bank
accounts or credit cards, personal information is not required to complete any
transaction.
3. Legal regulations on virtual currency
According to the provisions of the Civil Law, virtual currency is not considered
property, because it does not belong to the types of property specified in Article
105 of the Civil Code (Property is objects, money, valuable papers and property
rights Property includes immovable property and movable property). It is this,
leading to the next consequences that civil relations such as ownership, inheritance,
contract or compensation for damage related to virtual currency also almost fall
into the "gap", without a mechanism. to be properly resolved. For example, when a
subject's electronic wallet is hacked and a certain amount of virtual currency is
appropriated, is it possible to get it back? When the parties buying and selling
virtual currency do not fulfill the obligation to deliver the property, what civil
liability applies? When someone asks for the division of an inheritance that is
virtual money, will the division proceed? Or, when a person breaks someone else's
e-wallet, making login impossible, how will compensation be determined?
All of the above difficulties require a clear legal mechanism as a basis to resolve
the social relations arising in civil transactions related to virtual currencies that are
taking place every day in reality.
Although according to the provisions of the Civil Code, virtual currency is not
property and therefore virtual currency-related subjects are not protected by law
when performing transactions related to virtual currency. However, if the subject
takes advantage of virtual currency transactions to perform prohibited acts (such as
money laundering, terrorist financing, property appropriation fraud) or uses virtual
currency as a means of payment in Vietnam, Nam will be criminally responsible
depending on the nature and seriousness of the violation.