Stop getting hung up on why virtual currencies are banned domestically! The answer is just two words: Out of control!
Cryptocurrencies are no longer seen as 'get-rich-quick schemes' by players in the coin market, but rather as precise tools that hit the regulatory pain points — tearing apart foreign exchange controls while rendering the Golden Tax Phase IV a mere decoration. Is the national financial system going to be left with holes?
First, let's look at foreign exchange controls, the 'funding gates' that the state has set up at various levels, which are practically nonexistent in the face of cryptocurrencies! In first-tier cities, selling a house nets $5 million in cash; want to exchange it for $700,000 to transfer abroad? Legal paths are completely blocked: banks have a dual limit of $50,000 for foreign currency purchases and remittances, meaning it would take 14 years to transfer everything according to regulations; carrying over $5,000 in cash dollars gets regulated, and taking over $20,000 (equivalent) in RMB out of the country is a direct blockage; looking for someone else to transfer? If there are more than 3 people, the system will mark it, and remitting RMB abroad is something you can only dream of!
But once cryptocurrency is put into action, all rules become void! Without any limits, it perfectly bypasses restrictions; even if there is a $50,000 limit, by finding 14 people to split and exchange, assets can be stored in a USB drive and taken abroad without anyone being able to check! The attributes of decentralization and transaction anonymity completely detach this money from regulatory oversight, creating a big hole in the foreign exchange firewall that the country has painstakingly built!
Even more lethal is the golden tax phase IV! This tax system, which claims to 'precisely regulate every penny,' is a joke in the face of cryptocurrency! Cryptocurrency possesses the attributes of precious metals as a 'general equivalent' and the convenience of mobile payments—decentralized and anonymously circulated like gold, yet more convenient than fiat currency transfers, leaving no trace of funds throughout the process. Once it is allowed to circulate legally, enterprises will evade taxes and individuals will hide assets using cryptocurrencies, leaving tax authorities unable to trace the flow of funds, leading to a direct paralysis of the national tax system!
Don't use 'precious metals exiting circulation' to argue! Gold and silver fail due to physical inconvenience, while cryptocurrency is not subject to any physical limitations. Its payment efficiency is comparable to Alipay and PayPal. If this thing were to be legalized, it would equate to handing over the 'lifeline' of the country's financial sovereignty!
What is prohibited domestically is never new technology, but rather the risks that are out of control! Foreign exchange controls aim to maintain financial stability, while the golden tax phase IV protects the fiscal foundation. In the face of the country's core interests, the 'get-rich-quick myth' of cryptocurrency is simply not worth mentioning!
