China has reinforced its prohibition on cryptocurrency activity while issuing clearer restrictions on stablecoins and the tokenization of real world assets, signaling a coordinated escalation in oversight across multiple government agencies. In a joint notice released on February 6, eight major authorities reaffirmed that virtual currency related business activities constitute illegal financial conduct under existing law.
The statement was signed by the People’s Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the State Financial Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange. The agencies also announced the formation of a new joint force to assist regional governments in identifying and managing risks tied to digital asset and tokenization activities.
Chinese regulators emphasized that speculative behavior linked to virtual currencies and the tokenization of real world assets has disrupted economic and financial order. The notice reiterates the country’s comprehensive crypto ban first formalized in 2021, when the central bank and other departments issued guidance aimed at preventing and disposing of risks associated with virtual currency trading.
A key focus of the updated clarification concerns stablecoins. Authorities explicitly prohibited any domestic or foreign entity from issuing stablecoins pegged to the renminbi overseas. The move removes any ambiguity regarding yuan linked stablecoin issuance and underscores Beijing’s intent to maintain strict control over currency representation and cross border monetary flows.
The notice also expands restrictions on real world asset tokenization. Conducting RWA tokenization activities within China, or providing related intermediary and technology services, is now formally described as potentially involving illegal token issuance, unauthorized public offerings of securities, unlawful securities and futures operations, or illegal fundraising. Foreign entities are likewise barred from offering RWA tokenization services to domestic parties in any form.
In addition, regulators stated that strict supervision will apply to domestic entities conducting digital asset related business abroad. This suggests authorities are seeking to close perceived loopholes where companies might structure operations offshore while maintaining connections to the mainland.
Beyond the eight signatory bodies, the announcement highlighted enhanced coordination with the Cyberspace Administration of China, the Supreme People’s Court, and the Supreme People’s Procuratorate. The newly established joint force will provide guidance to local governments on risk prevention and enforcement related to illegal financial activities involving tokenized assets.
The clarification comes at a time when global interest in stablecoins and tokenized real world assets is accelerating. By explicitly extending its prohibition to these emerging segments, China has signaled that innovation in digital finance must align with state approved frameworks, reinforcing its broader strategy of centralized oversight and financial stability in the digital economy.
