How did Xu Jiayin's 20 billion go abroad? All policies are just to make things difficult for ordinary people.

Why is virtual currency not allowed in the country?

Illegal cryptocurrencies have already perfectly bypassed foreign exchange controls to a certain extent. If cryptocurrencies were allowed legally, it could even directly undermine the Golden Tax Phase IV.

If you sell a house in a first-tier city and receive 5 million cash, and you want to exchange this money for 700,000 USD to transfer abroad.

The bank has a foreign exchange limit of 50,000, and remittances also have a limit of 50,000, which serves as double insurance. It would take 14 years to complete the transfer.

If you use someone else's quota to convert to cash in USD and try to exit the country personally, carrying more than 5,000 will be regulated.

If you use someone else's quota to transfer to your overseas card, exceeding 3 individuals will attract attention. If you want to carry RMB out of the country and then exchange it for foreign currency, an individual can carry no more than 20,000 at a time.

If you want to remit RMB abroad, sorry, you can't remit even a cent. All legal paths you can imagine are blocked. Now back to cryptocurrencies.

If there are no quota restrictions, they can perfectly bypass the system. If there are quota limits, assuming the foreign currency is 50,000 USD, you can utilize someone else's quota. 14 people can help you exchange 5 million RMB and then put it on a USB drive to take abroad. As long as you don’t say anything, no one will know.

In summary: cryptocurrencies, in a sense, are equivalent to precious metals. They have similar properties to precious metals: decentralization and anonymous transactions, which leads to a completely uncontrollable state for centralized national finances.

With the advancement of time, precious metals have gradually withdrawn from circulation, primarily due to physical laws at play. Compared to fiat currencies, they are too inconvenient. However, cryptocurrencies are not constrained by physical laws, making them almost as convenient as payment platforms like Alipay and PayPal.

Even if we set aside the issue of foreign exchange controls, if everyone were really allowed to use cryptocurrencies, the Golden Tax Phase IV would become a joke. Who can tolerate that?
#中美贸易谈判 $BTC