China has introduced draft regulations aimed at tightening control over human-like AI systems. The proposed rules mandate that AI providers notify users upon login and every two hours thereafter, caution against over-reliance, and ensure alignment with core socialist values. The Cyberspace Administration of China is accepting public comments on these regulations until January 25. Under the new guidelines, companies must undergo security reviews and report to provincial regulators before and after reaching certain user milestones. Additionally, training data must adhere to national standards, avoiding content that challenges authority or disrupts social order. These regulations could influence liquidity and crypto markets as compliance with CFT becomes increasingly linked to AI operations.