Why is virtual currency not allowed in the country?
Illegal cryptocurrencies have already perfectly circumvented foreign exchange controls to some extent. If cryptocurrencies are allowed to be legal, they could even directly undermine the Golden Tax Phase IV.
If you sell a house in a first-tier city and receive 5 million cash, you want to exchange this money for 700,000 USD to transfer abroad.
The bank has a purchase limit of 50,000, and remittance is also limited to 50,000, providing double insurance. It would take 14 years to complete the transfer.
If you use someone else's limit to exchange for cash in USD and travel out of the country, carrying more than 5,000 will be regulated.
If you use someone else's limit to transfer to your offshore card, if more than 3 people are involved, you will attract attention. If you want to carry RMB out of the country and then exchange it for foreign currency, you cannot carry more than 20,000 at a time.
If you want to remit RMB abroad, sorry, not a penny can be remitted. All the legal paths you can imagine have been blocked. Now back to cryptocurrency.
If there are no limits, it perfectly circumvents them. If there are limits, assuming a reference of 50,000 USD, you can use someone else's limit. Fourteen people can help you exchange 5 million RMB, then store it on a USB drive and take it abroad. As long as you don't say anything, no one will know.
In summary: Cryptocurrency, in a sense, is equivalent to a general equivalent of precious metals. It has properties similar to precious metals: decentralization and anonymity in transactions, which leads to a state of complete loss of control for centralized national finances.
With the progress of the times, precious metals have gradually withdrawn from circulation, mainly due to physical laws at play. Compared to fiat currency, they are too inconvenient. However, cryptocurrency is not constrained by physical laws and is almost as convenient as payment platforms like Alipay and PayPal.
Even if we put aside the issue of foreign exchange control, if everyone truly used cryptocurrency, the Golden Tax Phase IV would become a joke. Who can stand it?
#China-US Trade Negotiations $BTC
