**China Tightens Crypto Rules Amidst Significant Bitcoin Holdings**

China's foreign exchange regulator has introduced new rules requiring banks to monitor and flag risky crypto-related trades. These regulations aim to curb activities like cross-border gambling and underground banking. Banks must now track transactions based on individual identities, fund sources, and trade frequency.

Despite its strict anti-crypto stance, China holds a significant amount of Bitcoin, valued at $18 billion, largely acquired through asset seizures. Former Binance CEO Changpeng Zhao suggests China might eventually adopt a Bitcoin reserve strategy, highlighting the country's potential for swift policy shifts.