New Forex Rules in China Target Risky Crypto Transactions

Crypto News Regulation

New Foreign Exchange Rules in China Target Risky Crypto Transactions

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 01, 2025

Key Takeaways

China’s stricter foreign exchange rules require banks to monitor and report risky crypto-related activities;
New regulations target cross-border gambling, underground banking, and illegal financial operations;
Despite its crypto ban, China holds 194,000 Bitcoin, valued at approximately $18 billion.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

New Foreign Exchange Rules in China Target Risky Crypto Transactions

BITDEGREE IN YOUR SOCIAL FEED

China has taken further steps to regulate cryptocurrency by introducing stricter foreign exchange rules.

According to the South China Morning Post, the rules require banks in the country to identify and report risky transactions.

These include activities tied to cross-border gambling, illegal international financial operations, and underground banking networks involving crypto assets.

What is DeFi in Crypto? (Explained with Animations)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Under these measures, financial institutions must closely monitor who is involved in transactions, where their money comes from, and how often they trade.

In 2019, China banned cryptocurrency transactions due to concerns about energy consumption from mining and the need to cut greenhouse gas emissions. The ban stopped financial institutions from engaging in crypto trading and mining activities.

Interestingly, China still ranks second globally in Bitcoin BTC $90,654.48 holdings. According to Bitbo’s Bitcoin Treasuries tracker, the country owns 194,000 Bitcoin, valued at about $18 billion at that time.

A lawyer at ZhiHeng law firm, Liu Zhengyao, noted that the new foreign exchange regulations provide additional grounds for penalizing crypto transactions.

Zhengyao explained that using China’s currency to buy digital assets and converting them into foreign currencies could be classified as cross-border activity. This would leave little room to bypass these rules using cryptocurrency.

In December 2024, Hong Kong also proposed rules for stablecoins, known as the Stablecoins Bill. What do the rules say? Read the full story.