China Widens Crypto Ban to Choke Off Stablecoins and Asset Tokenization

China's top financial regulators, including the People's Bank of China, have significantly extended the existing cryptocurrency ban to target stablecoin issuances and the tokenization of real-world assets (RWA). This move, detailed in a joint notice from eight agencies, aims to protect financial stability and monetary sovereignty by closing offshore loopholes. Foreign entities are banned from offering these services to Chinese residents, and domestic firms are prohibited from issuing digital currencies overseas without explicit approval. Authorities view stablecoins, especially those pegged to the Renminbi, as undermining state control over the money supply and circumventing AML protocols, thus threatening the official e-CNY. Furthermore, the crackdown reclassifies unauthorized RWA tokenization, such as fractionalized ownership of real estate, as illegal public security offerings or unauthorized futures business. Beijing is establishing a coordinated oversight framework to eliminate regulatory arbitrage, signaling that future digital finance must operate strictly within state-sanctioned, permissioned systems.

(Source：BeInCrypto)