On 06.02.2026, eight ministries led by the People’s Bank of China (PBOC) and the CSRC issued a joint notice broadening prohibitions on crypto-related activity across the country.

Scope of the new restrictions

The notice extends the ban beyond conventional cryptocurrencies like BTC and ETH to include stablecoins pegged to the yuan, and the tokenization of real-world assets on blockchains.

Tokenizing ownership rights for property, equities or bonds is now explicitly classified as illegal financial activity when carried out without approval, removing its prior grey-zone status.

Requirements for issuers and overseas units

No entity may issue a yuan-pegged stablecoin without direct government authorization, and the rules apply to foreign subsidiaries of Chinese firms as well.

Cross-border tokenization projects must obtain regulator approval, while technology and financial partners are required to meet enhanced compliance and oversight standards.

• Companies are restricted from using terms such as "cryptocurrency", "stablecoin" and "RWA" in corporate names and activity descriptions.

State digital currency developments

The regulatory tightening accompanies an active push for the state digital yuan, or e-CNY, as the preferred digital payment infrastructure under full government control.

In September 2025 Shanghai opened an international operational center for the digital yuan with platforms for cross-border payments, blockchain services and digital assets.

From January 2026 banks were authorized to pay interest on e-CNY balances and the instrument received parity with conventional deposits as "digital deposit money".

Via the mBridge platform, cross-border flows totaling ¥387 billion have already been processed, according to official statements.

Regulatory framing

Authorities present the measures as a consolidation of financial control and consumer protection, prioritizing state-managed digital infrastructure over decentralized innovation.