China Strengthens Cryptocurrency Restrictions, Including RWA and Stablecoins
- The People’s Bank of China has reaffirmed that trading digital assets remains illegal in mainland China.
- Tokenization of real-world assets (RWA) is prohibited unless conducted on approved financial infrastructure with regulatory consent.
- Issuing offshore stablecoins linked to the yuan requires approval from relevant authorities, affecting both domestic and foreign entities.
- The principle “same business, same risk, same rules” applies to offshore projects involving Chinese asset tokenization.
- Regulators have reiterated previous limitations on asset tokenization attempts via foreign jurisdictions like Hong Kong.
Chinese regulators have expanded their crackdown on cryptocurrency activities by including stricter controls over stablecoins and the tokenization of real-world assets (RWA). This move aligns with China’s ongoing efforts to maintain a centralized financial framework while discouraging decentralized finance models.
As a result of these regulations, all digital asset trading remains illegal, emphasizing the need for regulatory approval for any related activities within or connected to China. (Source)
