China Issues Sweeping Crypto Crackdown Banning Tokenization, Stablecoins
China has issued new regulations banning real-world asset tokenization and offshore issuance of yuan-pegged stablecoins. The People's Bank of China explicitly named Bitcoin, Ethereum, and Tether as lacking legal tender status in a notice signed by eight government agencies.
The ban extends to both domestic entities and their offshore subsidiaries, prohibiting Chinese companies from issuing virtual currencies or conducting RWA tokenization without prior government approval.
The regulations also require provincial governments to shut down existing mining operations and block new projects. The 'same business, same risk, same rules' principle applies extraterritorially, making Chinese citizens working for offshore crypto platforms liable for legal action.