Why doesn’t China take the initiative to establish a compliant virtual currency exchange? How difficult is it to achieve compliance in the virtual currency trading market?

This question troubles a large number of cryptocurrency enthusiasts from mainland China. They thought about it again and again, and they always felt that the road to compliance for cryptocurrency exchanges was actually not difficult, but why couldn't they go on? There are several reasons for this:

First, in a social group that lacks devotion to the law, anything that is so-called compliant may become non-compliant at some point. Everything is decided by one person, and if one person's cognition, attitude, and emotions can change the entire rules at will, then no rules will become permanent. Therefore, China still lacks stable rules to ensure that an exchange can become a long-term, fair and just capital trading center;

Second, foreign exchange controls have been implemented since the founding of the People's Republic of China. The opening of a virtual currency trading market means that foreign exchange controls are ineffective and any funds may enter and exit the country freely. So... from the perspective of private property protection, European and American countries obviously respect private property more, and funds will definitely flow to Europe and the United States, making China even poorer. If it is said that KYC can be used to monitor the flow of capital, it is obviously a fantasy. Because of the decentralization of the entire cryptocurrency, neither this chain nor that chain can be controlled by the government. Trading on exchanges, such as Binance, can be monitored, but cryptocurrencies can also be traded offline, which is a bit difficult to monitor. So the characteristics of cryptocurrency liberalization are completely contradictory to authoritarian exchange controls.

Third, back to the issue of black money and white money, there is a lot of money in China that is not white. For example: dirty money from embezzlement and bribery, black money from black industries, black money from tax evasion, etc. When the government initially took action against cryptocurrencies, it was because cryptocurrencies had become a channel for money laundering, and black money flowed directly overseas. It can also be said that in the past few years, the government has blocked the channels of underground banks in Hong Kong and started the mining industry in order to block the flow of money from China to overseas. However, in the duel between the superior and the evil, it is obvious that this operation Mainland China has not achieved much. Therefore, in the end, although the mining industry was brought down and cryptocurrency was treated as air, the results were minimal.$BTC $ETH $BNB