China’s central bank, the People’s Bank of China (PBOC), in coordination with seven government agencies, issued a joint notice prohibiting the unauthorised issuance of renminbi-linked stablecoins by any entity, domestic or foreign. The statement also bars overseas entities from offering related products to users inside China without official permission. Beijing reaffirmed its stance that crypto assets such as Bitcoin and Ethereum have no legal tender status and that facilitating transactions or related services constitutes illegal activity.
The regulator noted that stablecoins designed to mirror the functions of money could threaten monetary sovereignty, and warned that circulation outside regulatory oversight could undermine the yuan’s stability. This crackdown follows a sweeping 2021 policy that effectively eliminated crypto trading and payments from the domestic financial system. The measures reflect a broader effort to curb privately issued digital currencies while promoting the state-backed digital yuan. Beijing’s action underscores its tightened control over digital assets as authorities seek to preserve financial sovereignty and capital controls.
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