The State Administration of Foreign Exchange of China (SAFE) has provided a Cryptocurrency statement from an official!

Li Bin, deputy director of the State Administration of Foreign Exchange of China (SAFE), stated that the institution closely monitors the impact of cryptocurrencies on capital flows and plans to enhance its identification and monitoring capabilities.

Speaking at the sub-forum titled "Finding Monetary and Financial Stability in an Unstable World" of the Boao Forum for Asia, Li emphasized the importance of understanding how digital assets affect cross-border transactions. "This is a very important issue, and we will conduct in-depth research to continuously improve our monitoring capabilities," he said.

Although China has imposed strict regulations on cryptocurrency trading and mining, authorities continue to assess the impact of the sector on financial stability.

China claims to be concerned about capital flight, financial stability, and environmental issues, and in doing so, has managed to move many, if not all, of the large mining operations to other regions, including the United States, Kazakhstan, and Canada.

However, individual investors continued to use offshore services and decentralized finance (DeFi) protocols, both of which ensured that trading continued while the regulatory environment remained tight.