China has formally reinforced its nationwide prohibition on digital asset activities, issuing a joint statement that clarifies stricter rules on stablecoins and real world asset tokenization while strengthening enforcement mechanisms across multiple agencies.
Eight leading government authorities, including the People’s Bank of China, the National Development and Reform Commission, and the China Securities Regulatory Commission, jointly released the notice in early February. The document reiterates that all virtual currency related business activities constitute illegal financial activities under existing law and warns that speculative activity linked to digital tokens and tokenized assets has disrupted economic and financial order.
The statement makes explicit that no domestic or foreign entity may issue yuan pegged stablecoins overseas. By directly addressing Renminbi linked stablecoins, regulators have removed any perceived ambiguity around whether offshore issuance tied to China’s currency might fall outside domestic restrictions. Authorities signaled that such activity would be treated as a violation of financial regulations.
Stablecoins have drawn increasing scrutiny globally because they combine features of traditional currency instruments with blockchain based settlement systems. Chinese regulators have consistently expressed concern that privately issued digital tokens could affect monetary sovereignty and capital controls. The latest clarification underscores that unapproved stablecoin issuance connected to the Renminbi remains prohibited regardless of where it is structured.
The notice also targets the tokenization of real world assets, often referred to as RWAs, which involves representing assets such as property, commodities, or receivables on blockchain networks. Authorities stated that conducting RWA tokenization within China or providing related intermediary or technical services may amount to illegal token issuance, unauthorized securities offerings, illegal fundraising, or other prohibited financial conduct.
Foreign entities and individuals are likewise barred from offering RWA tokenization services to domestic participants in any form. Regulators emphasized that strict supervision will apply to Chinese entities conducting related digital asset activities overseas, reflecting ongoing efforts to prevent regulatory arbitrage.
China first imposed a comprehensive ban on cryptocurrency trading and mining in 2021, when the central bank and other departments issued a coordinated notice to curb virtual currency speculation. Subsequent statements have reaffirmed that position, particularly as global markets expanded into decentralized finance, stablecoin settlement systems, and asset tokenization models.
To strengthen enforcement, the latest directive announces the formation of a coordinated joint force. The participating agencies will work alongside the Cyberspace Administration of China, the Supreme People’s Court, and the Supreme People’s Procuratorate to guide regional authorities in preventing and addressing financial risks associated with illegal tokenization activities.
The expanded coordination suggests heightened monitoring of online platforms, cross border services, and technology providers linked to blockchain based financial products. By consolidating regulatory oversight across financial, judicial, and cybersecurity bodies, Beijing is signaling a continued hard line stance on digital asset innovation that intersects with fundraising, securities issuance, and currency linked instruments.
