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. That said, internal discussions and pilot proposals are underway:
* Beijing is reviewing a roadmap toward issuing yuan-backed stablecoins as part of its strategy to enhance international use of the renminbi (especially offshore via Hong Kong), signaling a potential regulatory shift;
* Financial regulators, including those in Shanghai, have begun deliberating policy responses, even considering allowing corporate stablecoin issuance via Hong Kong licensing;
* There are also directives instructing brokers and think tanks to halt promotion of stablecoins, reflecting deep regulatory caution.
Applicable Laws:
Circular No. 237 (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
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
