The State Administration of Foreign Exchange of China enhances cryptocurrency oversight for financial stability.
Speech at Boao Forum
Li Bin, deputy director of China's State Administration of Foreign Exchange, announced the agency's intent to enhance its cryptocurrency identification and monitoring capabilities. Addressing a sub-forum of the Boao Forum for Asia, he emphasized the importance of understanding digital assets' impact on cross-border transactions. "This is a very important issue, and we will conduct in-depth research to continuously improve our monitoring capabilities," he said.
Regulation and Financial Stability
Despite strict regulations on crypto trading and mining in China, authorities continue to assess the sector's impact on financial stability. China expresses concern over capital flight, financial stability, and environmental issues.
Impact on International Operations
Amid tightening regulatory environment, many major cryptocurrency mining operations in China have relocated to other regions, including the United States, Kazakhstan, and Canada. However, retail investors continue using offshore services and decentralized finance (DeFi) protocols, enabling ongoing trading.
China continues to strengthen control in the cryptocurrency sphere, adapting to new challenges in financial stability and international operations.
