Why does China not allow virtual currency trading platforms to exist?
I am very curious that in recent years, when China cracked down on illegal transactions such as fraud, online gambling, collusion, embezzlement, and money laundering, a large amount of virtual currency may have been confiscated.
So, how are these confiscated virtual currencies handled by judicial authorities? How to deal with them legally and in compliance with regulations needs to be supervised by the people.
The first contradiction: If the judicial authorities sell virtual currency in China and convert it into cash and collect it into the national treasury or use it for fiscal and people's livelihood. Then there must be a counterparty and a buyer for the sale. The buyer must buy it for the purpose of trading. In this case, not only the buyer is guilty, but the judicial authorities will also find it difficult to deal with it.
The second contradiction: If the judicial authorities entrust the sale of virtual currency overseas, first of all, there will be entry and exit declarations for valuable goods entering and leaving the country. If the customs allows virtual currency to be declared and inspected normally, then isn't it a disguised recognition of legality? Secondly, the money traded overseas is subject to restrictions on foreign exchange settlement, and can only be carried out either as an individual or as a company, and is subject to quota restrictions. Then individuals and companies engaging in this business are also involved in crimes.
The third contradiction: the value of virtual currency fluctuates greatly. Many virtual currency varieties have a life span of only a few years. If they are not cashed temporarily, if they are held and kept by judicial authorities. The rise and fall of the value of virtual currency, inventory management, may also breed corruption, and even financial statistics are difficult to do.
In fact, the key point is that the definition of virtual currency is very vague
Recently, I have also heard various news that in the near future, the domestic cryptocurrency market may also be opened. I don’t know how accurate this news is. What do you think?
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