CryptoWire, BEIJING, Feb 8, 2026: Chinese financial regulators have broadened the country’s sweeping restrictions on digital assets, extending enforcement measures to stablecoins and the tokenization of real-world assets, according to a joint regulatory notice issued on Friday. The move marks the most comprehensive update to China’s cryptocurrency framework since the nationwide ban on crypto mining and trading activities imposed in 2021. In the notice, authorities including the People’s Bank of China and the China Securities Regulatory Commission said recent increases in speculative activity linked to virtual currencies and asset tokenization had introduced new risks to financial stability and regulatory oversight.
The regulators stated that evolving digital asset structures required tighter controls to safeguard monetary order, market integrity, and investor protection. Under the updated rules, stablecoins and tokenized assets are formally brought under China’s existing prohibitions on cryptocurrency-related activity. The restrictions apply to both domestic and foreign entities that provide services or issue related products within China. The notice also bars Chinese organizations from issuing digital currencies or tokenized financial instruments overseas without prior authorization from relevant authorities, reinforcing the extraterritorial reach of the regulatory regime.
Regulators devoted particular attention to stablecoins, noting that such instruments can replicate core functions of sovereign currency, including use as a medium of exchange and unit of account. The notice states that this functional overlap creates potential risks to monetary control and financial order. As a result, any issuance of renminbi-linked stablecoins is prohibited unless explicitly approved by the government, regardless of whether the issuing entity is based in China or abroad. The updated framework also introduces stricter compliance requirements for Chinese companies involved in overseas asset tokenization.
China expands scope of digital asset regulation
While participation in foreign tokenization projects is not categorically banned, firms must not bypass approval or filing procedures. Financial institutions, technology providers, and other partners supporting such initiatives will be subject to enhanced due diligence, reporting standards, and supervisory scrutiny, according to the notice. China’s stance on cryptocurrencies has remained consistently restrictive since authorities moved in 2021 to outlaw crypto mining and declare most crypto-related business activities illegal. That earlier crackdown effectively dismantled a once-dominant domestic crypto mining industry and forced trading platforms and service providers to exit the mainland market. Subsequent enforcement actions have focused on preventing the reemergence of crypto-related activity through new technical or financial structures.
The latest measures follow earlier regulatory guidance issued to major Chinese technology companies, which were instructed to halt the development or launch of stablecoin projects. Those instructions reflected concerns among policymakers that privately issued digital currencies could undermine regulatory control over payments and capital flows, particularly as blockchain-based financial products gained traction globally. Despite the strict limits on private digital assets, Chinese authorities have continued to support state-backed digital finance initiatives. The digital yuan, issued by the central bank, remains the only officially sanctioned digital currency in the country and is positioned as a regulated alternative to private cryptocurrencies and stablecoins.
Tokenization rules apply to overseas operations
Officials have repeatedly emphasized that innovation in financial technology must operate within clearly defined legal and supervisory boundaries. China’s latest action comes amid diverging regulatory approaches worldwide. In the United States, lawmakers continue to debate comprehensive digital asset legislation, with unresolved questions around stablecoin structures, reserve requirements, and permissible yields contributing to legislative delays. Research published by PYMNTS Intelligence in collaboration with Citi has highlighted the role of regulation in shaping the next phase of blockchain adoption, while noting ongoing uncertainty in key markets. In Europe, policymakers have increasingly framed tokenization and central bank digital currencies as tools for strengthening payment system resilience.
Officials at the Deutsche Bundesbank have publicly emphasized the importance of maintaining control over critical payment infrastructure, citing dependence on foreign providers as a structural vulnerability. Initiatives such as the digital euro are being advanced as regulated, publicly issued alternatives within the existing monetary framework. For China, the expanded ban underscores the government’s long-standing position that digital asset activity must not compromise financial stability, monetary sovereignty, or regulatory authority. By explicitly covering stablecoins and tokenized assets, regulators have moved to close gaps that had emerged as blockchain technology evolved, reinforcing a policy framework that prioritizes centralized oversight over private issuance in the digital finance sector.