China Strengthens Crypto Monitoring as Traders Bypass Restrictions

A top official from China’s State Administration of Foreign Exchange (SAFE), Li Bin, emphasized the agency’s commitment to strengthening its ability to track and analyze the influence of cryptocurrencies on capital movements.

Speaking at a Boao Forum for Asia discussion on monetary stability, Li highlighted the need for deeper research into how digital assets impact cross-border financial transactions.

He stressed that continuous improvements in monitoring techniques are essential for understanding these evolving dynamics.

Despite China’s stringent policies against cryptocurrency trading and mining, authorities remain focused on evaluating the sector’s implications for financial stability.

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The country has justified its restrictions by citing concerns over capital outflows, financial risks, and environmental impact. These measures have pushed large-scale mining operations to relocate abroad, with destinations including the United States, Kazakhstan, and Canada.

However, individual investors have found ways to bypass regulations by accessing offshore exchanges and decentralized finance (DeFi) platforms, keeping crypto trading active even as domestic restrictions become increasingly strict.

Alexander Zdravkov