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China Unveils Tougher Crypto Regime, Banning Offshore Yuan Stablecoins and Most RWA Tokenization

The joint notice takes immediate effect to cement a cross‑agency crackdown that extends liability to overseas affiliates under a “same business, same risk, same rules” approach.

Overview

  • Regulators reaffirm that virtual currencies lack legal tender status and declare most crypto‑related business activities illegal unless explicitly approved.
  • Any unapproved issuance of renminbi‑pegged stablecoins overseas is prohibited for all entities, with domestic firms and controlled offshore vehicles requiring prior authorization.
  • Onshore real‑world asset tokenization and related intermediary or technical services are banned without approval, and offshore providers are barred from serving mainland users.
  • Enforcement orders include cutting banking and payment services to crypto, directing internet platforms to block promotions and assist takedowns, and mandating provincial shutdowns of mining operations.
  • The notice repeals the 2021 circular and immediately pressured markets, with reports of sharp declines in major cryptocurrencies following the announcement.