Why is public hype around virtual currency not allowed in China?

The core reason is simple: most ordinary people lack financial resilience and have an infantile mentality.
When they make money, they think it's due to their foresight; when they lose money, they throw tantrums and blame policies, refusing to accept the consequences of their bets. The state sets up risk barriers precisely to protect ordinary people.
This is reflected in the following points:
1. The inability to find access essentially means a mismatch of capability.
This is like the 360 paradox: people who can easily bypass controls to trade in crypto generally have mature risk awareness. Those who can't even find a channel to enter lack the mentality, experience, and ability to handle the crypto circle—if they enter, they'll just become bagholders.
2. Virtual currencies have no tangible asset backing.
Although people often complain about the A-share market, at least it has regulatory oversight and real corporate backing; even when Evergrande collapsed, its land and properties could be liquidated. Virtual currency abroad, however, is basically a cyber version of the Myanmar scam hubs—no regulation, no price limits, and built-in ultra-high leverage—like a game of pass-the-parcel.
3. The chaos in the crypto circle specifically preys on naive retail investors.
Those so-called "big-shot" traders online who promise to lead others to wealth are mostly fly-by-night operators who scam people with fake profiles and images. Countless retail investors are brainwashed into taking out online loans and maxing out credit cards to join, only to end up deep in debt.
4. The policy is about refusing to endorse, not an absolute ban.
The state doesn't completely prohibit individuals from holding or trading; it simply refuses to lend credit to virtual currencies and strictly forbids setting up Ponzi schemes or pyramid scams to defraud money. Small private trades are not interfered with, but you bear full responsibility for gains or losses—never come to the government to cause trouble if you lose.
5. The entry threshold is a mechanism to prevent fools from entering.
This is the same logic as the STAR Market's 500k RMB capital threshold and two-year trading experience requirement. Setting the bar isn't about restricting profit but screening for risk tolerance.
People who can't understand basic risks should just save their money securely and live a steady life, rather than fantasizing about getting rich overnight in the crypto circle and ending up losing everything.
That's why I never recommend novices rush into the circle. I always say: first go learn, understand the logic, then consider investing. At the table, if you can't tell who the fish is, you are that fish. 🐟