China has tightened its oversight of cryptocurrency trading by introducing new foreign exchange rules. These rules require Chinese banks to closely track customer identity, the source of funds, and trading frequencies to curb cross-border crypto activities.
On December 31, the South China Morning Post reported that mainland China’s new policies will make it more difficult for residents to purchase digital assets.
This move is part of China’s ongoing efforts to control cryptocurrency transactions and prevent capital outflows. The country has previously banned cryptocurrency exchanges and mining operations, but these new rules aim to further restrict individuals from engaging in crypto-related activities.
While the specific details of the new rules are still emerging, they are expected to make it more difficult for Chinese citizens to use foreign exchange for cryptocurrency transactions. This could have a significant impact on the cryptocurrency market, as China has historically been a major player in the space.
The Chinese government’s stance on cryptocurrencies remains firmly negative, and these new rules are likely to further discourage individuals from participating in the market. However, it remains to be seen how effectively these rules can be enforced and whether they will ultimately succeed in curbing crypto trading within China.
