China Bans Unapproved Yuan-Pegged Stablecoins in Sweeping Crackdown
China has escalated its campaign against cryptocurrency risks by prohibiting overseas issuance of yuan-pegged stablecoins. Eight government agencies, including the People's Bank of China (PBOC), jointly announced that any such issuance without approval constitutes illegal activity. The MOVE targets both domestic firms and their international affiliates.
Authorities cited concerns over money laundering, fraud, and uncontrolled cross-border capital flows as primary motivations. 'These activities undermine financial stability,' stated the regulatory notice, emphasizing stablecoins lack legal tender status in China.
The crackdown involves coordinated monitoring between central and local regulators. Domestic companies face explicit bans on facilitating offshore stablecoin transactions through foreign subsidiaries—a practice previously exploited to circumvent mainland restrictions.
