China's foreign exchange regulator has introduced new rules to enhance control over cryptocurrency activities.
New Regulations and Their Impact
The State Administration of Foreign Exchange (SAFE) has issued guidelines requiring banks to scrutinize transactions based on identity, funding sources, and transaction frequency to mitigate risks related to illicit financial practices.
China’s Bitcoin Holdings
Despite strict regulations, China holds a significant global position in Bitcoin. Since the 2017 crackdown on ICOs and crypto exchanges, and subsequent bans in 2021, China has accumulated approximately 194,000 BTC from enforcement actions against illicit activities.
China's Contradictory Approach
China continues its strict stance by demanding banks to monitor and report risky transactions involving cryptocurrencies, contrary to the global trend of embracing digital currencies, indicating China's focus on maintaining financial control.
China's financial regulators maintain stringent oversight of cryptocurrency operations, highlighting their financial security strategy.
