Why doesn't China allow cryptocurrency trading?

In recent years, the Chinese government has implemented strict regulatory policies on cryptocurrencies and banned the operation of related exchanges. The main reasons are as follows:

- Financial risk control: The cryptocurrency market is highly volatile, and prices are easily manipulated by speculators, which brings uncertainty to the stability of the financial market. In addition, due to the high anonymity of cryptocurrency transactions, it is easy to be used for illegal activities such as money laundering, smuggling and terrorist financing, which poses a hidden danger to national financial security.

- Protecting investor rights: There are problems of information asymmetry and speculation in the cryptocurrency market. Many investors lack professional knowledge and risk awareness of cryptocurrencies and are easily affected by market manipulation. In order to protect the rights and interests of investors, the Chinese government decided to ban cryptocurrency trading and abolish the operation of related exchanges.

- Monetary policy control: The existence of the cryptocurrency market may interfere with important monetary policy tools such as the country's money supply and interest rate regulation. In order to ensure the independence and effectiveness of the country's monetary policy, the Chinese government has taken measures to ban cryptocurrencies.

- Promoting the development of digital RMB: The Chinese government has been committed to promoting the development of digital currency, especially digital RMB. While banning cryptocurrencies, the Chinese government has stepped up the research and development and promotion of digital RMB.

- Prevent financial fraud and illegal capital flows: The cryptocurrency market can easily become a hotbed for financial fraud. Criminals attract investors through fake projects and exchanges, thereby defrauding a large amount of property. In order to prevent financial fraud and protect the interests of the majority of investors, cryptocurrencies also pose the risk of illegal capital flows. Some people use cryptocurrencies to illegally transfer funds to circumvent the review and control of regulators. #Mt.Gox将启动偿还计划 #美国PCE数据将公布 #币安合约锦标赛