Chinese regulators have significantly tightened the country's cryptocurrency restrictions, formally banning the unapproved overseas issuance of yuan-linked stablecoins and imposing strict new limits on the tokenization of real-world assets (RWA). The move, announced in a joint notice issued on February 6, 2026, represents a major expansion of China's 2021 crypto trading ban and signals a renewed regulatory push to close loopholes that emerged through offshore structures.
The new rules were outlined by multiple national organizations including the People's Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC). The notice explicitly prohibits any entity, whether domestic or foreign, from issuing a stablecoin linked to the Chinese yuan (renminbi) outside of China without prior government approval. Authorities stated that stablecoins perform functions similar to sovereign currencies, which could undermine the country's monetary system if left uncontrolled.
Chinese companies that previously issued or traded stablecoins abroad must now obtain regulatory approval or face penalties, highlighting China's growing concern over decentralized financial systems operating outside national authority. The regulations also extend to all crypto-related activities, including trading and issuance of digital currencies such as Bitcoin (BTC), Ether (ETH), and popular stablecoins like Tether (USDT), both within China and across its borders.
Another key focus is the tokenization of real-world assets, where ownership rights to physical or financial assets are converted into digital tokens. Chinese authorities have imposed stricter compliance standards, requiring any entity wishing to tokenize assets to gain regulatory approval or file necessary paperwork with government bodies before proceeding. Financial and tech partners involved in such activities must also adhere to enhanced compliance standards.
The regulations increase scrutiny of overseas cryptocurrency operations involving Chinese entities, with firms conducting crypto or tokenization activities outside China now facing heightened oversight. This expansion of controls is part of China's ongoing effort to curb speculative investment in virtual currencies, which regulators argue can destabilize the economy and pose challenges to financial stability.
Market participants now face tighter oversight, broader enforcement, and fewer gray areas for cross-border crypto activity tied to China. The move specifically targets crypto fraud, illegal fundraising, and offshore tokenization risks that authorities claim have emerged through new financial models.