China expands crypto crackdown, bans stablecoins and RWA
7 Regulation China expands its crypto crackdown, banning all trading, issuance, mining, and unapproved stablecoins, and restricting RWA tokenization and offshore activities.
China has intensified its crackdown on cryptocurrencies, issuing new directives that reaffirm and expand existing bans. The People’s Bank of China, along with seven other agencies, declared all crypto-related business activities—including trading, issuance, mining, and the use of unapproved RMB-linked stablecoins—as illegal. The measures explicitly prohibit the tokenization of real-world assets (RWA) unless specifically approved by designated financial infrastructure. Offshore entities are also barred from providing crypto or RWA tokenization services to Chinese users without proper authorization. Additionally, the export and issuance of yuan-backed stablecoins abroad are banned unless approved by authorities. Regulators cite concerns over monetary sovereignty, money laundering, and capital flight. These actions reinforce China’s commitment to strict control over digital assets, with enhanced enforcement to prevent rule circumvention.
