Chinese authorities announced a comprehensive ban on issuing yuan-denominated stablecoins overseas without approval. They defined cryptocurrency exchanges and trading intermediaries, as well as RWA tokenization activities, as illegal financial activities, promising a blanket ban and tougher enforcement. The notice specifies that no entity or individual, whether domestic or foreign, may issue yuan-denominated stablecoins overseas without approval.
Earlier, China halted the promotion of yuan-denominated stablecoins in Hong Kong, citing concerns it could undermine the adoption of a central bank digital currency. They reaffirmed that Bitcoin, Ethereum, and Tether do not have legal tender status and cannot circulate as money. Existing crypto regulations remain in force.
The notice also states that virtual asset exchanges, trading intermediaries, price feeds, fundraising through token issuance, and related financial product trading are illegal activities and are prohibited; overseas service providers to Chinese subjects will be blocked. Additionally, providing services related to RWA tokenization is generally prohibited, as it could lead to illegal securities issuance and fundraising. Enforcement will be tightened by restricting banks’ payment and settlement support and by limiting online promotion by Internet firms.
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