China Tightens Crypto Trade Oversight With New Forex Rules

The Chinese foreign exchange authority has implemented regulations mandating banks in the country to oversee and identify high-risk transactions involving cryptocurrency assets. The South China Morning Post on Dec 31 reported that mainland China’s new rules will make it more difficult for residents to buy digital assets. 

According to the regulations, banks are required to oversee and report high-risk forex trading activities. This encompasses cross-border gambling, underground banking, and illegal cross-border financial activities that involve crypto assets.

Chinese regulators also mandate that banks monitor the activities of individuals and institutions, including their identities, sources of funds, and trading frequency.

Illegal crypto ads prevail in UK despite FCA warning

Despite the financial regulator asking crypto projects to remove their advertisements targeting the country, illegal crypto ads continue to appear in the United Kingdom.

According to a report in Financial Times,  54% of the 1,702 alerts issued by the UK’s Financial Conduct Authority (FCA) between October 2023 and October 2024 ended in illegal crypto ads being taken down. The report indicated that the remaining crypto-related promotions are still active.

Companies have however not been fined by the FCA to remove crypto ads that violate the FCA’s rules. Digital asset promotions must receive approval from the FCA or an FCA-authorized entity before being launched.

The report also said that although the FCA has the authority to impose fines or prosecute offenders, it has opted to target financial influencers who advertised their schemes online.

Celsius to appeal order that disallowed its $444M claim against

FTXThe bankrupt crypto lending company Celsius has lodged an appeal against Judge John T. Dorsey's ruling, which rejected its claims for damages from FTX in the ongoing bankruptcy proceedings.

Celsius has been trying to claw back hundreds of millions from FTX, initially claiming $2 billion in damages over alleged “disparaging statements” that FTX officers made against Celsius that accelerated its fall. It later revised the claim to focus on “preferential transfers” that gave special treatment to some creditors and not others, claiming damages of $444 million.

In December, Dorsey rejected both claims, determining that Celsius' initial proofs of claim, which included merely a single sentence about probing potential preference claims, were inadequate to maintain their preference claims.

On December 31, Mohsin Meghji, the litigation administrator for Celsius Network and its related debtors, submitted a notice of appeal concerning Dorsey's memorandum opinion and order.