Research on Issues and Countermeasures in the Regulation of Non-Sovereign Digital Currencies in China

Abstract

In recent years, with the deepening trend of globalization, the financial market has become more prosperous, and all kinds of fi_x005fnancial technology products and services have emerged worldwide. Blockchain technology can be said to be the most disruptive financial
technology innovation of our time, and non-sovereign digital currency, as a product of the in-depth fusion of the traditional financial industry
and blockchain technology, faces both traditional financial risks and underlying technological risks in its development. Therefore, this is both
an opportunity for the development of the industry and a new challenge for the regulatory system. As more and more countries recognize the
role of digital currencies in business applications and value creation, China’s blanket ban on the exploration and development of non-sovereign digital currencies may not be the most appropriate choice. This paper analyzes the problems arising from the implementation process of
digital currency regulatory policy changes, explores how to further strengthen the regulation of non-sovereign digital currencies, improves
the construction of the financial regulatory system, and avoids the recurrence of the problems that emerged during the development of Internet finance in the wave of digital currencies is the original intention of this paper’s topic selection.