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China Bars Offshore Yuan-Pegged Stablecoins, Tightens Limits on Tokenizing Real-World Assets

Regulators frame the curbs as protecting monetary sovereignty, pledging tougher monitoring with coordinated enforcement.

Overview

  • A joint notice from eight agencies, including the People’s Bank of China and the China Securities Regulatory Commission, reaffirms a hardline stance on crypto activities.
  • The policy reiterates that virtual currencies and stablecoins lack legal tender status in China and that related business activities are illegal financial conduct.
  • Without approval, no entity may issue yuan-pegged stablecoins overseas, and domestic firms are barred from participating or facilitating such issuance via overseas affiliates.
  • Tokenization of real-world assets is restricted to explicitly authorized projects operating within designated financial infrastructure.
  • Authorities will strengthen oversight of financial and technology intermediaries, intensify monitoring of capital and information flows, crack down on illegal issuance and promotion, and expand public education.