In response to the risks associated with illegal cross-border financial activities involving virtual currencies, the State Administration of Foreign Exchange of China has issued the 'Administrative Measures for Reporting Bank Foreign Exchange Risk Transactions (Trial)'.

According to BlockBeats, on December 29, the website of the State Administration of Foreign Exchange of China shows that in order to better coordinate development and security, ensure the facilitation of cross-border trade and investment, prevent and curb illegal foreign exchange activities, and maintain order in the foreign exchange market, the State Administration of Foreign Exchange formulated the 'Administrative Measures for Reporting Bank Foreign Exchange Risk Transactions (Trial)' (hereinafter referred to as the 'Measures') based on the 'Administrative Measures for Bank Foreign Exchange Business (Trial)' (hereinafter referred to as the 'Business Measures') and relevant laws and regulations.

According to the 'Measures', banks that discover or have reasonable grounds to suspect that their domestic or foreign institutions and individual clients (hereinafter collectively referred to as transaction subjects) are engaged in foreign exchange risk transaction behaviors must monitor foreign exchange risk transaction information and submit foreign exchange risk transaction reports.

Foreign exchange risk transaction behaviors refer to activities involving suspected false trade, false investment and financing, underground banks, cross-border gambling, fraudulent export tax refunds, illegal cross-border financial activities involving virtual currencies, and other suspected illegal cross-border capital flow activities; foreign exchange risk transaction information refers to information related to foreign exchange risk transaction behaviors. Banks must promptly submit foreign exchange risk transaction reports to the State Administration of Foreign Exchange through their headquarters or institutions designated by the headquarters.