China’s foreign exchange regulatory authority has issued new rules for banks to tighten oversight of cryptocurrency transactions. These regulations aim to further restrict the use of Bitcoin and other digital assets in the country, focusing on activities deemed "risky transactions," such as underground banking, cross-border gambling, and illegal financial activities involving cryptocurrencies.
Banks are now required to monitor individuals and organizations by verifying their identities, sources of funds, and transaction frequency. Financial institutions must identify and limit services to those involved in suspicious activities. The State Administration of Foreign Exchange stated that these measures are designed to safeguard financial stability and prevent illegal operations.
Experts suggest that this move will make cryptocurrency trading even more challenging in China. The country, which previously implemented strict bans on crypto mining and trading, continues to curtail the use of digital assets with these new regulations.
