There are mainly the following reasons why virtual currency transactions are not legalized in China:

First, virtual currency lacks a clear value basis, and its price fluctuates violently, which can easily cause investors to suffer huge losses and trigger financial risks and instability.

Second, virtual currency transactions have relatively serious market manipulation and fraud risks, which are difficult to effectively regulate and may harm the interests of investors.

Furthermore, it may be used for illegal financial activities, such as money laundering and illegal financing, posing a threat to financial order and social stability.

In addition, the decentralized nature of virtual currency conflicts with the traditional financial regulatory system, making it difficult to incorporate it into an effective regulatory framework, which is not conducive to maintaining the security and stability of the financial system.

Finally, the large-scale transactions and "mining" of virtual currency will also consume a lot of energy and have adverse effects on the environment. Taking these factors into consideration, in order to maintain the health and stability of the financial market and protect the public interest, virtual currency transactions have not yet been legalized.