On February 6, the People’s Bank of China (PBOC), together with several other state regulators, issued a joint notice expanding existing restrictions on cryptocurrency-related activities. The document introduces several fundamentally new prohibitions and is notable for extending the reach of Chinese regulators beyond mainland China.

Key provisions include:

1. Yuan-denominated stablecoins require approval — including offshore issuance
Chinese and foreign companies are prohibited from issuing stablecoins pegged to the yuan without explicit authorization from Chinese authorities. This rule also applies to offshore issuance, meaning it covers issuers registered outside mainland China.

As reported by Reuters and Chinese state media, regulators emphasize that the only legal digital form of the yuan is the e-CNY issued by the PBOC.

2. Tokenization of real-world assets (RWA) under special scrutiny
The new rules ban the tokenization of mainland Chinese assets for offshore issuance.
In simple terms, converting Chinese real estate, securities, or other assets into digital tokens for placement abroad is now prohibited—at least without regulatory approval.

3. Reaffirmation of the general ban on crypto activity
The notice once again reiterates that cryptocurrencies do not have the status of legal tender in China. Any commercial activity related to cryptocurrencies remains prohibited, and the ban on mining stays firmly in place.

4. Requirements for internet companies
According to multiple sources, including CoinDesk and Bloomberg, the document also instructs internet platforms to completely eliminate crypto-related services from their operations.

More than just “China bans crypto again”

There are several reasons why this document matters from an infrastructure and regulatory standpoint.

Extraterritorial reach
For the first time, China has clearly articulated its claim to regulate offshore issuances tied to the yuan or Chinese assets. This sets an important precedent: the central bank’s jurisdiction now explicitly extends to issuers outside China if their products are linked to the Chinese currency or assets.
For global stablecoin projects and RWA platforms, the message is clear: working with yuan-based instruments without regard to Beijing is no longer viable—at least if there are plans to serve the Chinese market or Chinese users.

Protecting the e-CNY monopoly
Experts note that the document systematically reinforces the infrastructural monopoly of the digital yuan. The logic is straightforward: the emergence of a popular private yuan-denominated stablecoin—especially an offshore one—would directly compete with the state-issued CBDC.
More importantly, it would fall outside the central bank’s control. For a country that has long been fighting capital outflows, this is an unacceptable scenario.

RWA as a new front
Bringing real-world asset tokenization into the scope of restrictions is a relatively new move. Globally, the RWA segment is growing, and several jurisdictions—such as Singapore, the UAE, and Hong Kong—are actively developing regulatory frameworks for tokenized assets. CoinDesk and other analysts point out that these jurisdictions are opting for regulated access rather than outright bans.

China, by contrast, has clearly chosen not to allow uncontrolled tokenization of its domestic assets—especially when it involves moving them offshore.

For anyone following the space, China’s crypto bans are nothing new. ICOs were banned in 2017, followed by crypto exchanges the same year. A comprehensive ban on mining came in 2021.

The current notice extends existing restrictions to new asset categories and new types of activity. At the same time, China continues to actively develop its own digital yuan (e-CNY), piloting it in dozens of cities and gradually increasing transaction volumes. The result is a mixed picture: strict suppression of private crypto initiatives alongside the promotion of a state-backed alternative

The global regulatory trend

China’s actions should not be viewed in isolation. Globally, several models for regulating stablecoins are emerging:

• The United States is actively debating stablecoin legislation (the GENIUS Act and the STABLE Act), while facing resistance from the banking lobby concerned about competition from stablecoins.
• The European Union has already implemented MiCA, introducing licensing requirements for issuers.
• Hong Kong and Singapore are pursuing a model of regulated market access.

China has chosen a model of a total ban on private initiatives while promoting a state-issued CBDC.
Even in crypto-friendly jurisdictions, regulators are increasingly distinguishing between stablecoins pegged to national currencies and other crypto assets.

Keeply’s take: building crypto products in this environment

• Jurisdictional analysis is essential. If your product works with assets or currencies tied to specific countries, assess what extraterritorial claims their regulators may assert. China is not the only jurisdiction with such ambitions.
• Fiat-backed stablecoins face heightened scrutiny. Stablecoins pegged to national currencies are increasingly viewed as a matter of monetary sovereignty. Factor this in when choosing assets to integrate.
• RWA projects require legal expertise. If you are working with real-world asset tokenization, make sure you fully understand the legal status of the underlying assets across all relevant jurisdictions.
• Segment your markets. For global products, it may make sense to clearly separate functionality by jurisdiction.
• Monitor the CBDC agenda. The development of state digital currencies directly affects regulatory attitudes toward private alternatives. Countries with active CBDC programs tend to take a tougher stance on stablecoins.

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