Why is bank transfer restricted when virtual currency trading is seemingly not banned? Unveiling the underlying reasons
Why does it seem that virtual currency trading is not banned, while banks restrict transfers?
The situation for domestic cryptocurrency trading is challenging, and the legal environment is extremely unfriendly to the crypto sector. Individuals' so-called legitimate rights in the crypto space are not protected by law, legal interests are not supported, and illegal acts will be punished. For example, if someone holds a hundred bitcoins and they are lost or stolen, the law does not intervene.
When cashing out a hundred bitcoins, one faces numerous risks, particularly the risk of receiving dirty money or being scammed. Although the law does not explicitly prohibit individuals from trading cryptocurrencies, it strictly forbids providing trading services; while holding virtual currencies is not banned, providing cash-out services is not allowed. In the domestic market, if an exchange scams investors, there is no legal recourse for them.
Currently, in the financial game of cryptocurrency, China seems to have lost the initiative. However, this is not the case; the harm caused by virtual currency trading speculation is enormous, disrupting financial order, leading to numerous illegal activities, and threatening the property safety of the public. The restriction on bank transfers is part of the country's efforts to regulate the situation, controlling the flow of funds to prevent the spread of risks and maintain financial stability and social peace. China is not at a disadvantage in the cryptocurrency field, but is actively defending itself to protect the interests of the nation and its people from the harm of illegal virtual currency activities.
