Why is virtual currency banned domestically? 2 major fatal risks that directly impact the financial foundation!
The strict regulation of virtual currency in the country is fundamentally aimed at preventing two major fatal hazards, safeguarding the bottom line of finance and public finance!
1. Easily bypass foreign exchange controls, capital flight is unobstructed
Want to cash out 5 million from selling a house and transfer it abroad? Legal pathways are completely restricted (annual foreign currency purchase/remittance is only 50,000, taking 14 years to complete), but virtual currency can be traded point-to-point without limits, 14 people can exchange 5 million, store it on a USB drive and carry it with you, making regulation impossible to trace, directly impacting foreign exchange stability!
2. The fourth phase of the golden tax is practically non-existent, and the tax revenue system is collapsing
Cryptocurrency is decentralized and transactions are anonymous, comparable to “digital precious metals,” yet more convenient than precious metals (comparable to Alipay).
Once legalized, transaction flows will be untraceable, tax evasion and money laundering will become the norm, and tax regulation will be completely out of control, directly shaking the foundation of public finance!
Banning virtual currency is not a hasty one-size-fits-all decision, but a necessary choice to safeguard national financial security and eliminate risks that impact the core system!
