China Expands Crypto Crackdown, Bans Unauthorized Yuan Stablecoins

New regulations target offshore issuance of yuan-pegged digital assets and require strict oversight of tokens backed by Chinese onshore assets.

Published on Feb. 8, 2026

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China's central bank and seven other government agencies have issued new rules banning the unauthorized offshore issuance of yuan-pegged stablecoins and expanding the country's ongoing crackdown on cryptocurrency activities. The directive prohibits domestic entities and their overseas subsidiaries from issuing virtual currencies without official approval, and also bars foreign entities from issuing offshore stablecoins pegged to the yuan without authorization. The regulations also address the growing real-world asset tokenization sector in China, requiring approval for the offshore issuance of tokens based on onshore Chinese assets.

Why it matters

China has maintained a ban on cryptocurrency trading since 2021, and the new measures target specific activities that emerged as workarounds to existing restrictions. The regulations also represent a shift in China's approach to the tokenization of real-world assets, an area that has previously operated in a grey regulatory area. The directive reinforces Beijing's stance that only the digital yuan is a legitimate virtual currency, dismissing private yuan stablecoins circulating on global crypto exchanges.

The details

The eight government agencies, including the People's Bank of China, stated that virtual currencies lack the same legal status as fiat currencies and classified business activities related to virtual currencies as illegal financial activities. The central bank also warned financial institutions against providing banking and clearing services to virtual currency businesses. Officials cited recent speculative activities as creating new challenges that prompted the need for additional enforcement measures beyond existing bans.

  • China banned cryptocurrency trading in 2021.
  • The new regulations were issued on February 7, 2026.

The players

People's Bank of China

China's central bank, which issued the new directive alongside seven other government agencies.

Winston Ma

An adjunct professor at NYU School of Law, who said China's central bank is making clear that only its digital yuan is legitimate.

Alex Zuo

The senior vice president at Singapore-based Cobo, who said the new regulations suggest China may allow the issuance of tokens based on onshore Chinese assets under proper regulation.

Louis Wan

The CEO of Unified Labs, who called the separation between virtual currencies and real-world assets a breakthrough and described the inclusion of real-world assets in the regulatory system as a milestone for China's business in this sector.

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What they’re saying

“China's central bank is making clear that only its digital yuan is legitimate. The statement dismisses private yuan stablecoins circulating on global crypto exchanges.”

— Winston Ma, Adjunct Professor, NYU School of Law (coincentral.com)

“The inclusion of real-world assets in the regulatory system is a milestone for China's business in this sector.”

— Louis Wan, CEO, Unified Labs (coincentral.com)

What’s next

Industry watchers are waiting to see if detailed implementation guidelines will follow the new regulations.

The takeaway

China's latest crackdown on cryptocurrencies reinforces its stance that only the digital yuan is a legitimate virtual currency, while also introducing new regulations for the tokenization of real-world assets, an area that has previously operated in a regulatory grey zone.