Yuan-pegged stablecoins face new restrictions under China policy
New rules extend China’s digital asset controls to yuan-linked stablecoins and tokenised assets.
Chinese regulators have tightened controls on digital assets by banning the unauthorised issuance of yuan-pegged stablecoins overseas. The move extends existing restrictions to tokenised financial products linked to China’s currency and reinforces state control over monetary instruments.
In a joint notice, the People’s Bank of China and seven other agencies said no domestic or foreign entity may issue renminbi-linked stablecoins without approval. Authorities warned that such tokens replicate core monetary functions and could undermine currency sovereignty.
The rules also cover blockchain-based representations of real-world assets, including tokenised bonds and equities. Overseas providers are prohibited from offering these services to users in China without regulatory permission.
Beijing reaffirmed that cryptocurrencies such as Bitcoin and Ether have no legal tender status. Facilitating payments or related services using such assets remains illegal under China’s financial laws.
The measures align with China’s broader strategy of restricting private digital currencies while advancing the state-backed digital yuan. Officials have recently expanded the e-CNY’s role by allowing interest payments to encourage wider adoption.
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