China has implemented new foreign exchange regulations aimed at curbing crypto-related financial activities, requiring banks to monitor and report transactions linked to cross-border gambling, underground banking, and illicit digital asset trading.
These measures, which include tracking individuals’ funding sources and transaction patterns, are designed to tighten access to cryptocurrencies.
Legal experts note that the new rules further restrict crypto use, classifying yuan-to-crypto purchases as potential cross-border violations.
This builds on China’s 2019 ban on crypto transactions, justified by concerns over financial risk and environmental impact.
Despite its anti-crypto stance, China holds approximately 194,000 BTC, worth over $18 billion, mostly acquired through asset seizures.
Former Binance CEO Changpeng “CZ” Zhao speculates that China could eventually adopt a Bitcoin reserve strategy, noting the country’s ability to enact rapid policy shifts.
However, for now, China remains firmly opposed to crypto trading and ownership.
