China Will Regulate Bank Withdrawals Above 100,000 Yuan

Xinhua: China to pilot regulations on large cash transactions

China has designated three pilot areas to regulate cash transactions in large amounts amid efforts to strengthen cash circulation management and curb illegal activities, the central bank said.

Hebei Province will start the two-year pilot program in July, while Zhejiang Province and the city of Shenzhen will start the experiment in October, according to a plan released by the People's Bank of China.

All three pilot areas will regulate cash transactions of 500,000 yuan (about 70,600 U.S. dollars) or above for business accounts. For personal accounts, Hebei, Zhejiang and Shenzhen have set the thresholds of regulation at 100,000 yuan, 300,000 yuan and 200,000 yuan, respectively.

This coincides with a crackdown on Bitcoin.

ATimes: China freezes crypto traders’ bank accounts

Several thousand bank accounts belonging to cryptocurrency traders have reportedly been frozen by Chinese police as a result of an extensive crackdown on illicit activities, Bitcoin.com reported.

The police in China’s Guangdong province have been freezing bank accounts of over-the-counter (OTC) cryptocurrency buyers and sellers in the country. Chinese publication 8btc reported on Monday that about 4,000 such bank accounts have been frozen since June 4 on the suspicion of being involved in illicit activities, including money laundering.

Evading capital controls.

China has been boosting its trade surplus for a reason. Money creation was turned up in the wake of the coronavirus pandemic. Ignoring any other changes, a rise in money and credit supply will increase pressure on reserves as the "permanent" demand for overseas assets has more capital to work with. However, it is also likely the official policy of money creation increased the demand for foreign currency and foreign assets.

iFeng: “大款”有变！个人存取10万以上或须登记，日常用现金会受影响吗？

The regulation of large amounts of cash this time is mainly to combat crimes and maintain national economic and financial security. Because cash is anonymous and untraceable, large amounts of cash are easy to facilitate corruption, tax evasion and other money laundering crimes and underground economic activities, which may endanger the national economic and financial order and security.

In 2017, the People's Bank of China conducted a survey and found that there was a single withdrawal of more than 100 million yuan in cash. In today's environment where bank card payments and bank transfers are very convenient, this situation is not reasonable.

The person in charge of the central bank said that in recent years, the demand for cash, especially large amounts of cash , has been on the rise. At the same time, my country's large-scale cash flow monitoring and management is still blank, and it has not adapted to the needs of my country's market economy development and social governance.

According to the incomplete statistics and investigation and demonstration of the People's Bank of China in 2017, the proportion of individual transactions exceeding 100,000 yuan in the cash deposit and withdrawal business of banking financial institutions in individual regions accounts for less than 1%, but the amount is close to 27%.