China Tightens Cryptocurrency Trading Oversight with New Forex Rules
China’s new foreign exchange rules require Chinese banks to track identity, funding sources and trading frequencies to curb cross-border cryptocurrency activity.
China’s foreign exchange regulator has issued rules requiring banks in the country to monitor and report risky transactions involving crypto assets.
On December 31, the South China Morning Post reported that China’s new rules will make it harder for Chinese residents to buy digital assets.
Under the rules, banks must monitor and report risky forex trading activities. These include cross-border gambling, underground banking and illegal cross-border financial activities involving crypto assets.
Chinese regulators also require banks in mainland China to track activities based on the identity of the individuals and institutions involved, the source of their funds and the frequency of their trades.