The essence of virtual currency determines its profound contradiction with the current regulatory system.
Currently, cross-border capital flows are subject to strict controls, and ordinary residents have very limited paths to transfer large assets through legal channels. Taking the proceeds from the sale of real estate as an example, if one needs to exchange for foreign currency, they will face multiple restrictions such as personal foreign exchange quotas and cross-border remittance limits, making the actual process nearly impossible to achieve.
However, the emergence of virtual currency fundamentally changes this rule. It bypasses the centralized nodes of traditional financial institutions and achieves instant cross-border transfer of value in a permissionless network. Through decentralized trading channels, it theoretically avoids conventional foreign exchange controls, making the cross-border flow of large assets difficult to trace and manage.
This decentralized, highly anonymous digital asset with value-carrying functions poses a fundamental challenge to the modern financial management system that relies on monitoring capital flows. The effective implementation of core functions such as tax collection, capital project management, and anti-money laundering is based on the traceability of capital flows.
The technological characteristics of virtual currency make it inherently difficult to fully incorporate into the current regulatory framework. If allowed to enter the mainstream payment and capital circulation system on a large scale and in a compliant manner, it would have an immeasurable impact on national financial security and the effectiveness of monetary policy. Therefore, the relevant restrictive measures are a necessary choice under the current regulatory logic, aiming to limit its influence mainly within specific asset categories.