China Cracks Down on Unapproved Yuan-Pegged Stablecoins
China has escalated its campaign against unauthorized stablecoins pegged to the offshore yuan, with the People’s Bank of China (PBOC) reiterating its prohibition of all cryptocurrency-related activities. The MOVE aims to curb capital flight and financial crimes, particularly money laundering and foreign exchange fraud.
Hong Kong regulators have joined the crackdown, emphasizing that no licenses have been issued for such stablecoins and that their promotion remains illegal. This aligns with Beijing’s broader push to promote its central bank digital currency, the eCNY, while stifling competing private alternatives.
The regulatory squeeze targets offshore RMB tokens, including CNH stablecoins, as authorities seek to maintain tight control over capital flows and monetary policy. The ban underscores China’s zero-tolerance approach to crypto innovations that operate outside state-sanctioned channels.
