Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The newly established regulations reinforce China’s strict position on cryptocurrency and enforce limitations on tokenized real-world assets as well as the international issuance of yuan stablecoins.
China flag (Unsplash)
Key points:
- Chinese financial regulators reaffirmed the 2021 prohibition on cryptocurrency trading and stablecoins, encompassing cross-border operations.
- The tokenization of real-world assets will now face stringent regulations, with certain exceptions, according to the notice.
- Increased scrutiny will be placed on international crypto and tokenization activities conducted by Chinese organizations.
Chinese authorities have expanded their crackdown on cryptocurrency activities, implementing strict oversight on tokenization and stablecoin issuance in a notice released on Friday.
"Recently, influenced by various factors, speculative behaviors associated with virtual currencies and the tokenization of real-world assets have been frequently observed, presenting new challenges for risk management and control," stated the notice, jointly issued by eight national bodies including the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC).
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the State of Crypto Newsletter today. See all newslettersSign me up
Related Posts
The notice reiterates China’s comprehensive ban on cryptocurrencies, indicating that trading, issuing, or facilitating transactions involving digital currencies such as bitcoin , ether , or stablecoins like Tether’s USDT is prohibited.
The ban applies to foreign entities and individuals providing such services within China. Additionally, it prohibits domestic organizations from issuing digital currencies abroad without regulatory authorization.
Stablecoins—cryptocurrencies tied to fiat currencies—are highlighted for increased scrutiny. Officials argue that stablecoins perform essential functions of sovereign money and could jeopardize monetary control.
The new regulations clarify that no entity, whether Chinese or foreign, is allowed to issue a stablecoin linked to the renminbi internationally without government consent. This includes overseas branches of domestic companies.
The guidelines also enhance controls over tokenization, a rapidly evolving practice of converting ownership of tangible assets like stocks, real estate, or funds into digital tokens.
Chinese businesses seeking to tokenize assets abroad must now secure approvals or notify regulators, and their financial and technological partners are required to adhere to stricter compliance standards, as stated in the notice.
China’s enforcement against cryptocurrencies and related activities has been consistent over the past years. The updated regulations build on the 2021 determination by Chinese authorities declaring all crypto-related business operations illegal and banning crypto mining, often referred to as the “China ban.” In 2017, officials prohibited Initial Coin Offerings (ICOs), categorizing them as illegal fundraising and financial fraud, and mandated domestic cryptocurrency exchanges to cease fiat-to-crypto trading activities.
Read more: China Never Completely Banned Crypto
