China Bans Privately Issued Stablecoins in Sweeping Regulatory Move
China's central bank has joined forces with seven government agencies to prohibit the issuance of private stablecoins pegged to the yuan, marking one of the most aggressive regulatory actions against cryptocurrency in recent months. The ban applies universally—covering both domestic and foreign entities attempting to create yuan-linked digital assets without explicit government approval.
The People’s Bank of China framed stablecoins as unauthorized quasi-monetary instruments, stating they "perform some of the functions of fiat currencies in disguise." The policy explicitly extends to offshore yuan (CNH) markets, closing potential loopholes for international operators. Winston Ma, a former CIC executive and NYU scholar, characterized the MOVE as part of Beijing's broader strategy to isolate speculative crypto activity while advancing its central bank digital currency, the e-CNY.
