China Urges Global Cooperation in Monitoring Cryptocurrency Transactions

The People’s Bank of China emphasized the importance of regulating the cryptocurrency market in its 2024 Financial Stability Report.

According to the document, 51 jurisdictions worldwide have imposed bans or restrictions on the use of cryptocurrency assets, while some economies are adjusting existing laws or adopting new ones for regulation.

The report mentions that Hong Kong is “actively exploring” cryptocurrency licensing. Specifically, it requires major financial institutions, such as HSBC and Standard Chartered Bank, to include bitcoin transactions in standard client oversight.

The regulator will continue to work on improving the regulatory framework in line with the recommendations of the Financial Stability Board. Among the important tasks is international coordination on cross-border monitoring of crypto assets.

“Cryptocurrencies may pose risks in some economies as their use cases in payments and retail investments expand,” the report states.

Earlier, HashKey Group CEO Xiao Feng suggested that a friendly stance towards cryptocurrencies from the Donald Trump administration would be one of the factors prompting China to lift restrictions on the digital asset market.