China Imposes New Crypto Restrictions: Stablecoins and Asset Tokenization Banned

Scope of Regulations Expands Eight national organizations, including the People's Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC), have issued a joint statement intensifying the crackdown on cryptocurrencies.
The new regulations reaffirm the ban on crypto trading and stablecoins introduced in 2021, while extending the scope of restrictions to the process of tokenizing real-world assets (RWA).
This process will now be subject to much stricter oversight, with very limited exceptions.
Stablecoins and Monetary Policy Authorities have specifically targeted stablecoins pegged to fiat currencies.
Regulators argue that these digital assets mimic the core functions of sovereign money, which threatens the state's control over monetary policy.
Under the new rules, the issuance of renminbi (yuan) linked stablecoins abroad without government approval is strictly prohibited.
This ban also covers the overseas branches of Chinese firms.
Legal Sanctions and Previous Rulings The published notice reiterated that trading, issuing, or mediating transactions for digital currencies such as Bitcoin (BTC), Ether (ETH), and Tether (USDT) is illegal.
These bans apply to foreign entities and individuals providing services within China.
Furthermore, domestic entities are prohibited from issuing digital currencies abroad without regulatory approval.