Bitcoin Regulation Tightens in China: New Forex Rules from Beijing
New Forex Regulations Impact Bitcoin Trading
In a recent announcement, China's State Administration of Foreign Exchange unveiled new regulations that compel banks to monitor and report risky foreign exchange trading behaviors. These behaviors include dealings in cryptocurrencies, such as Bitcoin, and may further restrict how investors engage with digital assets.
Draconian Measures
- Banks must identify and track the entities and individuals involved in crypto trades.
- Mandatory risk-control measures will limit certain banking services for those participating in dubious activities.
- The crackdown highlights Beijing's ongoing efforts to mitigate financial threats posed by cryptocurrency activities.
Liu Zhengyao, a lawyer at ZhiHeng Law Firm, emphasized on WeChat that these rules will form a robust legal framework to penalize crypto trading. Such measures mean using the yuan to buy cryptocurrencies would count as cross-border financial activities, making evasion of forex regulations considerably harder.
The Legal Landscape of Crypto in China
As regulations mount, crypto trading in China faces greater scrutiny. Following past bans on initial coin offerings and Bitcoin mining, experts within the nation see the challenges of trading digital assets growing. Although a surge in Bitcoin prices, influenced by political factors, raises calls for softer approaches, the government remains steadfast in its stringent stance on cryptocurrencies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.