The new rules impose requirements on cryptocurrency market participants that were previously applicable to the international Forex currency exchange market. The regulator explained that banks and other financial institutions must identify high-risk transactions by checking the identity of the persons or institutions involved, the sources of funds and the frequency of transactions.
The main goal of SAFE is the stated desire to stop underground banking, cross-border gambling and other illegal transactions related to the use of cryptocurrencies.
SAFE added that as part of the interim measures, financial institutions must implement risk control procedures and limit services to organizations that are considered high-risk, as the regulator continues to view cryptocurrencies as a threat to the financial stability of the country.
Earlier, the former CEO of the largest crypto exchange Binance, Changpeng Zhao, suggested that sooner or later China will create a strategic reserve in bitcoins, implementing the plan proposed by US President-elect Donald Trump.
Source: Bits
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