CHINA BARS UNAPPROVED ISSUANCE OF YUAN STABLECOINS ABROAD

(Bloomberg) -- China tightened curbs on cryptocurrencies and tokenized real-world assets, barring domestic entities from issuing digital tokens overseas and banning the offshore issuance of yuan-linked stablecoins without approval.

The People’s Bank of China and seven other agencies said in a joint notice on Friday that onshore firms, as well as offshore entities they control, may not issue cryptocurrencies abroad unless authorized by relevant authorities. The regulators also said that no institution or individual may issue stablecoins linked to the yuan overseas without approval, citing risks to monetary sovereignty.

“Speculation involving cryptocurrencies and real-world asset tokenization has occurred from time to time amid multiple factors, presenting new challenges for risk prevention and control, and necessitating stronger regulation to safeguard national security and social stability,” the regulators said in the notice. 

The Chinese authorities also reiterated Beijing’s long-standing stance that cryptocurrencies including Bitcoin, Ether and stablecoins have no legal status equivalent to fiat money, and related business activities in the mainland constitute illegal financial activity. Offshore entities are also prohibited from illegally providing crypto-related services to onshore clients, the regulators added.

“I think it is a very significant announcement even though it is couched as a ‘reconfirmation’ of existing protocol,” said Michael Shaoul, portfolio manager at ION Asset Management. The notice “helps separate the China tech ecosystem from the US-led alternative, where crypto and associated technology is fully embedded,” he added.

The regulators also boosted scrutiny of real-world asset tokenization, saying such activities — including the related intermediary and technology services — could amount to illegal fund-raising and are banned unless explicitly approved under designated financial infrastructure.

Beijing’s move comes at a time of elevated volatility in crypto markets. Bitcoin entered February trading within striking distance of $80,000; the token’s price fell to around $60,000 over the course of the week before recovering much of the losses. 

(Updated to add quote in fifth paragraph and Bitcoin market context in seventh paragraph)

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2026-02-06T13:41:41Z