New rules in China require banks to report risky transactions, including those involving cryptocurrencies, making it difficult for mainland investors to trade digital assets.

ChinaChina's foreign exchange regulator, the State Administration of Foreign Exchange, has introduced new rules that require banks to closely monitor transactions involving digital assets, the South China Morning Post reported. I've learnedquoted from the organizer's announcement.

The report stated that the rules applied to local banks in mainland China focus on identifying “risky behaviors in foreign exchange trading.” These include underground banking, cross-border transactions involving cryptocurrencies, and illegal financial activities.

Banks now have to track transactions by checking things like who participates, where the money comes from, and how often transactions occur. In addition, Chinese banks are also expected to put in place risk control measures for these entities and limit their access to certain services, the report says.

The new rules are part of China's push to tighten control over cryptocurrencies, including Bitcoin trading and mining, which officials see as a risk to financial stability.

China has taken a tough stance on cryptocurrencies over the years. Back in 2017, Beijing banned it Initial coin offerings And local cryptocurrency exchanges are closed to prevent financial risks. By 2021, things have escalated With a complete ban On cryptocurrency trading and mining. Despite these restrictions, it is still technically legal for individuals to hold digital assets, although gray areas in regulation make things complicated.