Analysis of Legal Risks of Transactions of Bitcoin Futures in Chinese Mainland

Although there is currently no Bitcoin futures trading in Chinese Mainland, there is the possibility of financial innovation in future. The success or failure of the U.S. Bitcoin futures trading was analyzed from an empirical perspective: Regulators replace active review with self-certification, and Bitcoin futures trading violates the law of one price, both of which are prone to financial risks. Bitcoin futures break through previous government barriers that largely separated the virtual currency market from the regulated financial system. Although it has a positive role in integrating the virtual currency market with the broader financial system, it is not recommended for Chinese domestic use in the near future. The futures contract market listed by exchanges should be contracts that are not easily manipulated. In the future, domestic Bitcoin futures trading should emphasize legal regulations and technical support and strengthen the approval process before new products are launched.