China Strengthens Regulations on Illegal Foreign Exchange Transactions Including Virtual Assets
Summary
- The Chinese foreign exchange regulatory authorities announced that they have strengthened regulations to crack down on risk transactions related to virtual assets.
- According to the rules, banks must monitor risky foreign exchange transactions such as cross-border gambling and underground bank activities.
- A new basis for punishing virtual asset transactions has been established, and the regulatory stance in Mainland China may continue to strengthen.
The Chinese foreign exchange regulatory authorities have strengthened regulations to crack down on risk transactions related to virtual assets (cryptocurrency).
According to a report by Cointelegraph on the 1st (local time), Chinese regulatory authorities announced, "In accordance with the rules, banks must monitor risky foreign exchange trading activities and report based on identity, source of funds, transaction frequency, etc. This includes cross-border gambling, underground banks, and illegal cross-border financial activities related to virtual assets."
Liu Zhengyao, a lawyer at Zhihang Law Firm, explained, "This rule provides another basis for punishing transactions related to virtual assets. The regulatory stance on virtual assets in Mainland China may continue to strengthen."
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