Porcelain has taken more steps to regulate cryptocurrencies through introduce stricter exchange rules.
According to the South China Morning Post, the rules require the country’s banks to identify and report risky transactions.
These include activities related to cross-border gambling, illegal international financial operations and clandestine banking networks that involve cryptoassets.
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According to these measures, financial institutions must be closely monitor who is involved in transactions, where their money comes from and how often they trade.
In 2019, China cryptocurrency transactions banned due to energy consumption concerns of mining and the need to reduce greenhouse gas emissions. The ban prevented financial institutions from engaging in cryptocurrency mining and trading activities.
Curiously, China still ranks second worldwide in Bitcoin
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$94,398.79
A lawyer from ZhiHeng Law Firm, Liu Zhengyao, noted that the new foreign exchange regulations provide additional grounds for penalizing crypto transactions.
Zhengyao explained that using the Chinese currency to Buying digital assets and converting them into foreign currencies could be classified as cross-border activity. This would leave little room to circumvent these rules using cryptocurrencies.
In December 2024, Hong Kong also proposed rules for stablecoins, known as the Stablecoin Bill. What do the rules say? Read the full story.
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