Since 2021, China has enforced a strict prohibition on cryptocurrency trading, mining, and stablecoin issuance, including outside jurisdictions, due to concerns about financial stability and capital flight.
On 6 February 2026, PBOC and seven agencies issued Yinfa [2026] No. 42 (in force), extending the virtual currency ban to explicitly cover RMB-pegged stablecoins and RWA. It declares all virtual currency business activities illegal in mainland China, prohibits unauthorized offshore issuance by Chinese-linked entities, and bars overseas providers from serving domestic entities. No positive licensing framework exists for private stablecoin issuers.
Applicable Laws:
Notice on Further Preventing and Disposing of Risks of Speculation in Virtual Currency Trading (Yinfa [2021] No. 237) - https://lpscdn.linklaters.com/knowledge/-/media/digital-marketing-image-library/files/06_ckp/2022/february/20220214-llzs-china-s-crypto-ban-extends-to-a-wider-range-of-crypto-based-activities.ashx?rev=0f277053-e35d-4574-b832-798cf372c647&extension=pdf
Circular No. 1283 (In Force) - https://lpscdn.linklaters.com/knowledge/-/media/digital-marketing-image-library/files/06_ckp/2022/february/20220214-llzs-china-s-crypto-ban-extends-to-a-wider-range-of-crypto-based-activities.ashx?rev=0f277053-e35d-4574-b832-798cf372c647&extension=pdf
Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Matters (Yinfa [2026] No. 42) - https://www.pbc.gov.cn/tiaofasi/144941/3581332/2026020619591971323/index.html
Regulatory Guidelines on the Offshore Issuance of Asset-Backed Securities Tokens Backed by Onshore Assets (CSRC) - https://www.hankunlaw.com/en/portal/article/index/cid/8/id/16265.html
