China expands crypto crackdown to stablecoins, asset tokenization

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email China expands crypto crackdown to stablecoins, asset tokenization The set of new rules reaffirm China’s hardline stance on crypto and impose restrictions on tokenized real-world assets and overseas issuance of yuan stablecoins. By Krisztian Sandor | Edited by Nikhilesh De Feb 6, 2026, 4:10 p.m. Make us preferred on Google China flag (Unsplash) What to know : Chinese financial agencies and watchdogs issued a notice reasserting the 2021 ban on crypto trading and stablecoins, including cross-border activity. Tokenization of real-world assets are now subject to strict controls, with limited exceptions, the notice said. Overseas crypto and tokenization activities by Chinese entities face increased scrutiny, it added. Chinese regulators have broadened their crackdown on crypto activities, imposing strict oversight on tokenization and stablecoin issuance in a Friday notice . "Recently, influenced by various factors, speculative activities related to virtual currencies and the tokenization of real-world assets have occurred frequently, posing new challenges and situations for risk prevention and control," said the notice, issued jointly by eight national organizations including the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC). STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . The notice reiterates China’s blanket ban on crypto, saying that trading, issuing or facilitating transactions involving digital currencies such as bitcoin BTC $ 65,998.81 , ether ETH $ 1,926.58 , or stablecoins like Tether's USDT USDT $ 0.9991 is illegal. The prohibition extends to foreign entities and individuals offering such services within China. It also bans domestic entities from issuing digital currencies overseas without regulatory approval. The notice singles out stablecoins — cryptocurrencies pegged to fiat currencies — for special scrutiny. Authorities argue stablecoins replicate key functions of sovereign money and therefore threaten monetary control. The new rules make clear that no entity, Chinese or foreign, may issue a stablecoin linked to the renminbi abroad without government approval. That includes overseas branches of domestic firms. The rules also tighten control over tokenization, the fast-growing trend of turning ownership of real-world assets like equities, real estate or funds into digital tokens. Chinese firms that want to tokenize assets overseas now must obtain approvals or file with regulators, and their financial and tech partners are required to meet heightened compliance standards, the notice said. China's crackdown on cryptocurrencies and related activities have been a staple over the past years. The new set of rules build on Chinese authorities in 2021 deeming all crypto-related business activities illegal and prohibiting crypto mining, often called a "China ban." In 2017, authorities banned Initial Coin Offerings (ICOs), labeling them as illegal fundraising and financial fraud, and ordered domestic cryptocurrency exchanges to shutter fiat-to-crypto trading operations. Read more: China Never Completely Banned Crypto China China crypto ban Tokenization Stablecoins In this article BTC BTC $ 65.998,81 ◢ 6,75 % ETH ETH $ 1.926,58 ◢ 8,05 % USDT USDT $ 0.9991 ◢ 0,03 %