China expands crypto crackdown to stablecoins, asset tokenization

Chinese regulators, including the People's Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC), have issued new rules expanding their hardline stance against virtual currencies. The notice targets speculative activities related to crypto and the tokenization of real-world assets, citing new challenges for risk control. The rules reiterate the blanket ban on trading, issuing, or facilitating transactions involving cryptocurrencies like Bitcoin or stablecoins within China, extending this prohibition to foreign entities serving Chinese users. Specifically, authorities are scrutinizing stablecoins, viewing them as threats to monetary control, and now require government approval for any entity, domestic or foreign, to issue a renminbi-linked stablecoin abroad. Furthermore, Chinese firms engaging in the tokenization of real-world assets overseas must now obtain regulatory approval and ensure partners meet heightened compliance standards. These measures build upon previous crackdowns, including the 2021 ban on crypto-related business activities and mining, and the 2017 ban on ICOs.

(Source：CoinDesk)