Nikolas Sargeant
On December 31, China’s foreign exchange regulator introduced new rules requiring banks to monitor and flag risky crypto-related trades. The regulations aim to make it harder for residents to buy digital assets by focusing on cross-border gambling, illegal financial activities, and underground banking networks involving crypto.
Banks are now required to track the identities of those involved in these activities, their sources of funds, and the frequency of their trades. This move strengthens China's already stringent anti-crypto policies, which have included a ban on crypto transactions since 2019.
China’s Continued Anti-Crypto Stance
Experts predict the new rules will further tighten China’s grip on crypto. Lawyer Liu Zhengyao noted that the regulations make it more difficult to circumvent forex laws by using crypto to exchange yuan for foreign currencies.
Despite its harsh stance on digital assets, China remains a significant player in the crypto world, holding around 194,000 BTC (worth about $18 billion). These assets were acquired through asset seizures linked to illicit activities, not active purchases.
