On the eve of 2025, the Chinese government released new laws tightening control over cryptocurrency circulation, marking another step in its ongoing crackdown on the crypto market.
New Crypto Restrictions in China
On Dec. 31, 2024, China tightened its crypto regulation once again. Banks are now required to flag all cross-border crypto transactions and block parties from certain services. The State Administration of Foreign Exchange categorizes crypto transactions as risky financial activities, and banks are obliged to monitor clients' activities in this domain. These measures will likely further strain China's crypto sector, which already operates under stringent conditions.
Previous Bans and Their Global Impact
China began to crack down on crypto in 2017, banning initial coin offerings and impacting Bitcoin prices globally. By 2021, mining was banned, shifting China's position as a leading Bitcoin miner. These measures allowed the USA to become the world's leading cryptocurrency miner.
Do Other Countries Follow China's Lead?
Despite China's influence, its approach does not set the standard for other countries. Nations like Turkey and Egypt imposed restrictions before China. Furthermore, countries like Morocco are moving toward cryptocurrency legalization, indicating that China's approach is not universally adopted.
China continues to tighten its grip on cryptocurrency, but its influence on other nations remains limited. Many countries make decisions based on domestic economic and political factors.
