China has introduced new regulations to monitor and control risky foreign exchange activities, including those involving cryptocurrencies. The rules require banks to track individuals and entities involved in suspicious transactions related to cross-border gambling, underground financial networks, and unauthorized crypto dealings. Legal experts believe this is part of China’s ongoing crackdown on crypto trading. Despite this, there is growing recognition of the importance of the crypto industry, with the People’s Bank of China acknowledging Hong Kong as a leader in crypto regulation and a Chinese court ruling that owning cryptocurrencies is legal. However, regulators remain cautious about expanding crypto adoption in payment systems and retail investments due to potential risks to financial systems.
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