Chinese Regulator Introduces Stricter Crypto Rules

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The Chinese government has implemented new foreign exchange regulations that require banks to closely monitor and flag any high-risk transactions involving cryptocurrency assets.

As reported on December 31 by the South China Morning Post, these regulations will make it more challenging for Chinese residents to purchase digital assets.

Under these rules, banks are responsible for reporting any potentially risky foreign exchange trading activities, such as cross-border gambling, underground banking, and illegal cross-border financial activities that involve cryptocurrency assets.

Banks are also required to keep track of key information, including the identity of individuals and institutions involved, the sources of funds, and the frequency of transactions. Liu Zhengyao, a lawyer at ZhiHeng Law Firm, explained that these new regulations will provide another basis for punishing crypto trading.