Why does China not allow virtual currency trading platforms to exist?

China's ban on virtual currency trading platforms is mainly to prevent financial risks, combat illegal activities, maintain financial order and protect investors. The virtual currency market is volatile and prone to speculation and systemic financial risks. Its anonymity and decentralized nature make it a tool for money laundering, fraud and terrorist financing, endangering social security. Banning trading platforms helps maintain the central bank's monetary control, prevent capital outflows, and protect ordinary investors from high-risk investment losses. At the same time, China is actively promoting the application of digital RMB and blockchain technology, exploring safe and compliant digital financial development paths.