China Tightens Crypto Regulations with New Ban on Stablecoins and RWA Tokenization

China's financial authorities have escalated their crackdown on cryptocurrencies with a revised joint notice targeting yuan-pegged stablecoins and real-world asset (RWA) tokenization. The People's Bank of China and seven other agencies explicitly banned unauthorized offshore issuance of stablecoins, warning that such instruments threaten the yuan's monetary stability.

The sweeping regulations maintain China's prohibition on all crypto-related business activities, classifying them as illegal financial operations. Financial institutions are barred from servicing crypto enterprises, while mining operations continue facing enforcement actions. Companies can no longer register with crypto-related terminology in their names or business scopes.

Notably, the policy creates China's first regulatory framework for RWA tokenization—previously existing in a legal gray area. Louis Wan of Unified Labs observed this represents a significant breakthrough, establishing clear boundaries between virtual currencies and regulated digital assets.