The immediate impact of this new financial law draft in China on cryptocurrencies is mainly:

🤘🏻Regulators can pull KOLs, project teams, and OTC merchants’ bank account transaction records, logs, and exchange API records without going through traditional judicial procedures, so efficiency will be much higher.
🤘🏻Freezing and seizing funds and securities — administrative measures directly move against accounts; no court ruling is needed. Back then, when that Yunnan JC directly cracked down on Multichain, it was even criticized for skipping procedures—now it seems that may no longer be needed.
🤘🏻Restricting outbound travel — this is the most lethal to people working in crypto. In the past, “border control” was a criminal coercive measure, so only big shots like Sun Ge had the qualifications to enjoy it. Now, it can be used in the financial investigation stage, and the number of people put under border control is estimated to increase significantly.
Of course, I think what’s even more dangerous is the hidden subtext, because it looks like they’re planning to keep the regulatory gray area since the 924 notice:
“Not making laws is the best form of legislation.” It’s not that crypto isn’t going to be regulated—there just isn’t any basis in law, so they can regulate however they want.
After Hong Kong’s stablecoin regulations and the US GENIUS Act, the institutional gap between mainland China and other places regarding cryptocurrencies will widen even further.
It doesn’t seem like anything good. OTC difficulty is probably going to be further amplified. ε=(´ο｀*))) Sigh, things are tough. 🥲