- China’s foreign exchange regulator announced new rules aimed at tightening oversight of cryptocurrency activities.
- China remains the second-largest holder of Bitcoin globally, owning about 194,000 BTC.
China’s foreign exchange authority has introduced stringent regulations for cryptocurrency operations.
The new directives mandate banks to diligently track and report potentially hazardous transactions, especially those involving cryptocurrencies like Bitcoin.
Under these guidelines set by the State Administration of Foreign Exchange, banks were to scrutinize transactions based on the participants’ identities, funding sources, and transaction frequency.
The measures aim to mitigate risks associated with illicit financial practices, including unauthorized banking and international gambling.
These rules reflected China’s ongoing effort to enforce stricter financial controls in the digital asset space.
What are these regulations and their impact?
SAFE has implemented new guidelines that significantly tighten the oversight of digital currency transactions.
These regulations mandated that Chinese banks intensify the monitoring and reporting of potentially risky cryptocurrency transactions.
Banks are now required to identify the individuals and entities involved in these transactions, track the source of the funds, and scrutinize the frequency of these trades.
The primary objectives…
