China Expands Crypto Ban to RMB Stablecoins, Tokenized Assets

The People's Bank of China, along with seven other regulatory agencies, issued a joint notice on Friday expanding the country's longstanding ban on cryptocurrencies to prohibit the unapproved issuance of renminbi-pegged stablecoins and the tokenization of real-world assets, both domestically and offshore.

The directive, signed by entities including the Ministry of Industry and Information Technology, the Ministry of Public Security, and the China Securities Regulatory Commission, targets activities that regulators say pose risks to financial stability and national security. It explicitly bars any unit or individual, whether in China or abroad, from issuing stablecoins linked to the renminbi without consent from relevant authorities. Domestic firms and their offshore affiliates are also forbidden from issuing cryptocurrencies or tokenized assets overseas unless authorized. The notice extends these restrictions to the tokenization of domestic assets and rights abroad, classifying such actions as potential violations of financial laws unless conducted through approved channels.

Officials stated that stablecoins pegged to fiat currencies "perform some of the functions of fiat...