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


China’s foreign exchange regulator released new rules that require banks to flag risky trades, including those involving cryptocurrencies, which would make it more difficult for mainland investors to buy and sell bitcoin and other digital assets.

Banks are expected to monitor and report “risky foreign exchange trading behaviours”, including underground banks, cross-border gambling and illegal cross-border financial activities involving cryptocurrencies, according to last week’s announcement by the State Administration of Foreign Exchange.

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