South China Morning Post reports that China is implementing new regulations in order to control and identify risky activities involving foreign exchange, such as those which involve cryptocurrencies.
According to the report, China’s State Administration of Foreign Exchange recently directed banks to monitor and report suspicious transactions tied to cross-border gambling, underground financial networks, and unauthorized crypto dealings.
New rules mandate that banks track individuals, entities, sources of funding, and trading patterns.
These measures are seen by legal experts as an additional clampdown against crypto trading in the country. Liu Zhengyao, a lawyer at the ZhiHeng law firm, reportedly remarked that these rules deepen China’s regulatory arsenal against crypto, reinforcing the government’s intention to control the industry.
China’s crypto relationship
While the latest measures reflect China’s strict stance on crypto, they highlight the government’s nuanced approach to the broader industry.
Over the years, the Asian country’s government has enacted strict regulatory measures on commercial crypto activities, like Bitcoin trading and mining, because it views them as potential threats to financial stability.
However, recent developments suggest a growing recognition of the sector’s significance.
In its 2024 Financial Stability Report, the People’s Bank of China (PBOC) recognized Hong Kong as a leader in crypto regulation. In the report, it was also stressed that robust frameworks are needed to oversee digital assets. They should be aligned with global efforts.
In addition, the Chinese courts have previously declared that holding cryptocurrencies was legal. Still, it emphasized their use is strictly limited to personal ownership or commodities—not as a payment method or investment vehicle.
Despite recognizing the industry’s potential, Chinese regulators remain cautious. It warns that increasing crypto adoption could put financial systems at risk.
Postings in: China, Cryptocurrency, Featured Articles, Regulation Author 
Oluwapelumi Adejumo
Oluwapelumi is a believer in Bitcoin. He shares his insights and opinions on topics such as DeFi, Hacks, Mining, Culture, etc., highlighting the transformative power of Bitcoin.
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Assad Jafri
AJ has been a journalist for more than a decade, and he’s also a keen traveler. He specializes in financial reporting and now concentrates on cryptocurrency.
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