Catenaa, Sunday, February 08, 2026-China has widened its crackdown on digital assets, explicitly banning real-world asset tokenization and unapproved offshore yuan-pegged stablecoins while reaffirming that all crypto activity remains illegal on the mainland.
In a joint notice issued Friday, the People’s Bank of China and several top regulators said activities tied to cryptocurrencies, token issuance, trading, financing and related services continue to disrupt financial order. Authorities said the ban now clearly extends to RWA tokenization unless carried out on approved financial infrastructure with regulatory consent.
The notice was released by the central bank alongside agencies including the National Development and Reform Commission, the Ministry of Public Security, the securities regulator and the foreign-exchange watchdog. It restated Beijing’s position that cryptocurrencies such as bitcoin and stablecoins do not have the same legal standing as fiat currency and may not circulate as money.
Regulators also sharpened restrictions on yuan-linked stablecoins. Without approval, no entity or individual, inside or outside China, may issue offshore stablecoins pegged to the renminbi. The measure tightens oversight of domestic firms and their offshore units pursuing crypto-linked projects abroad.
The directive defined RWA tokenization as the use of cryptography and distributed ledger technology to convert ownership or income rights into token-like certificates that can be issued or traded. Authorities said such activity, along with intermediary and technical services, is prohibited unless explicitly approved.
The notice added that foreign entities may not provide illegal tokenization services to domestic counterparts. For offshore structures tied to domestic assets or rights, regulators will apply “same business, same risk, same rules” supervision, requiring filings or prior consent.
China has previously halted tokenization initiatives in Hong Kong and continued to warn about stablecoin risks while promoting state-backed digital currency projects.
