Stop pondering why the country prohibits virtual currency trading! The reason is simple: it's afraid of losing control!\nFirst, let's talk about foreign exchange controls. The country has set up several defenses to protect financial security in foreign exchange, like building a sturdy castle. But with the arrival of cryptocurrencies, these defenses seem as fragile as paper. For example, if you sell a house in a first-tier city and get 5 million dollars in cash, wanting to transfer 700,000 dollars abroad. Normally, through legal channels, banks have a limit of 50,000 dollars per person per year for currency exchange and remittance. According to this rule, it would take you 14 years to transfer the money completely. If you want to carry cash out of the country, anything over 5,000 dollars will be regulated; carrying more than 20,000 (equivalent) in RMB will also be stopped. Even if you want to ask someone else to help with the exchange, if there are more than 3 people, the system will flag it, and directly remitting RMB abroad is out of the question.\nBut cryptocurrencies don't care about these rules. There are no limits, and it can easily bypass them. Even if there is a limit of 50,000 dollars, you can find 14 people to split the exchange, then store the assets on a USB drive, slip it into your pocket, and go abroad without anyone noticing. It is decentralized and trades anonymously, so this money completely escapes regulatory oversight, tearing a big hole in the foreign exchange defenses that the country has worked hard to establish.\nNext, let's take a look at the Golden Tax Phase IV. This tax system claims to accurately monitor every flow of funds, but it is completely ineffective in the face of cryptocurrencies. Cryptocurrencies have the characteristics of being decentralized and anonymously tradable like precious metals, along with the convenience and speed of mobile payments, all while leaving no trace of funds. If it is allowed to circulate legally, businesses can evade taxes, and individuals can hide assets using cryptocurrencies, leaving tax authorities unable to track the flow of funds. How can the country's tax system operate?\nSome might bring up the exit of precious metals from circulation, but gold and silver gradually withdrew from circulation due to their inconvenience in carrying, whereas cryptocurrencies have no physical restrictions, and their payment efficiency is comparable to Alipay and PayPal. If it is legalized, it would mean handing over a key part of the country's financial sovereignty to others.\nWhat is prohibited domestically is not a new technology, but the potential risks of losing control it may bring.