China Enforces Stricter Forex Regulations to Restrict Cryptocurrency Activities

News on the Blockchain, January 2nd, 2025

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📈 Preview On Today’s News:

1. - China Enforces Stricter Forex Regulations to Restrict Cryptocurrency Activities

2. - Hong Kong Advances Cryptocurrency Market with Major Bitcoin Investments and Enhanced Infrastructure

3. - Celsius Network Appeals Denial of $444M FTX Damages Claim Amid Legal Turmoil

Keep reading below for more!

Today’s News:

1)

China Enforces Stricter Forex Regulations to Restrict Cryptocurrency Activities

On December 31, 2024, China’s State Administration of Foreign Exchange (SAFE) introduced new foreign exchange rules aimed at tightening oversight of cryptocurrency operations to prevent illegal cross-border transactions. These regulations require banks to monitor and report high-risk digital asset trades, including those involving Bitcoin, by evaluating factors such as the identities of the parties involved, their sources of funds, and the frequency of transactions. This initiative is part of China’s ongoing crackdown on cryptocurrencies, which includes bans on initial coin offerings (ICOs), cryptocurrency exchanges, and mining activities since 2017. The government seeks to safeguard financial stability and eliminate illicit activities like underground banking and gambling through these measures. Despite holding a significant amount of seized Bitcoin, China shows no indication of relaxing its stringent crypto policies, even as global trends favor greater acceptance of digital assets. Additionally, legal risks for cryptocurrency traders in China are escalating, with the Supreme People’s Court ruling against the use of cryptocurrencies for converting criminal proceeds and increased scrutiny of stablecoins such as Tether.

• Enhanced Oversight: China’s SAFE mandates that banks identify and report high-risk cryptocurrency transactions to combat illegal financial activities and maintain financial stability.

• Ongoing Crackdown: The new regulations reinforce China’s strict stance on digital assets, increasing legal risks for traders and contrasting with global trends toward cryptocurrency acceptance.

2)

Hong Kong Advances Cryptocurrency Market with Major Bitcoin Investments and Enhanced Infrastructure

Hong Kong is making significant strides in the cryptocurrency landscape, highlighted by Yuxing Technology’s acquisition of 78.2 Bitcoin for $6.3 million, reflecting strong institutional confidence in crypto assets. Additionally, legislative efforts led by Wu Jiexhuang aim to incorporate Bitcoin into Hong Kong’s financial reserves to bolster financial stability and reduce dependence on traditional assets. To further support the crypto ecosystem, the Hong Kong Exchanges and Clearing Limited (HKEX) introduced a Virtual Asset Index Series and is finalizing licenses for major crypto exchanges like Crypto.com, positioning Hong Kong as a premier fintech and crypto hub. Market sentiment remains bullish, with Bitcoin trading around $95K and expectations of upward momentum fueled by industry support.

• Major Investment and Legislative Support: Yuxing Technology invests $6.3M in Bitcoin, and efforts are underway to add BTC to Hong Kong’s financial reserves to enhance stability.

• Enhanced Crypto Infrastructure: HKEX launches a Virtual Asset Index and licenses major exchanges like Crypto.com, strengthening Hong Kong’s position as a leading crypto fintech hub.

3)

Celsius Network Appeals Denial of $444M FTX Damages Claim Amid Legal Turmoil

Defunct crypto lender Celsius Network has filed an appeal against Judge John Dorsey's decision to deny its $444 million claim for damages related to the collapse of FTX, as part of the ongoing bankruptcy proceedings involving the fallen exchange led by Sam Bankman-Fried. Initially seeking up to $2 billion in damages due to alleged defamatory statements by FTX officers that purportedly accelerated Celsius' collapse, the company reduced its claim to $444 million to focus on restoring preferential repayments for certain creditors. The court previously dismissed both the original and amended claims, citing insufficient evidence and procedural issues. Additionally, Celsius' former CEO Alex Mashinsky faces fraud and market manipulation charges, potentially leading to a lengthy prison sentence, further complicating the company’s efforts to recover and repay its creditors.

• Celsius Network appeals the dismissal of its $444 million claim against FTX, arguing that the initial evidence satisfies Bankruptcy Code requirements and aims to prioritize repayments for specific creditors.

• Former CEO Alex Mashinsky is charged with wire fraud and market manipulation related to Celsius' collapse, facing up to 115 years in prison.

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