China’s new forex rules require banks to tighten scrutiny on cryptocurrency trades

The rules, applicable to local banks across mainland China, also require them to track such activities based on the identity of the institutions and individuals involved, source of funds and trading frequency, among other factors. In addition, banks are required to put in place risk-control measures that cover those entities and restrict provision of certain services to them, the regulator said. The latest rules reflect how Beijing continues to exercise draconian regulation to root out commercial cryptocurrency activities, such as bitcoin trading and mining, as the digital asset is considered a threat to the country’s financial stability.

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