China’s central bank and seven regulatory bodies have jointly banned the unapproved issuance of Renminbi‑pegged stablecoins and tokenized real‑world assets (RWAs). The directive, issued by the People’s Bank of China alongside agencies including the Ministry of Industry and Information Technology and the China Securities Regulatory Commission, bars both domestic and foreign entities from creating RMB‑linked stablecoins without explicit regulatory approval.
The regulators said stablecoins tied to fiat can effectively act as a disguised form of currency when circulated and used, and therefore must not be issued without authorization. The prohibition explicitly covers tokenized RWAs as well as stablecoins and applies across all markets tied to the Renminbi.
Winston Ma, an adjunct professor at NYU School of Law and a former managing director at China’s sovereign wealth fund, noted the ban covers both onshore (CNY) and offshore (CNH) versions of the yuan. He framed the move as consistent with a broader, multi‑year policy to keep speculative crypto activity outside the regulated financial system while steering development toward the central bank’s digital currency, the e‑CNY.
The decision follows several policy shifts over recent months. In August 2025, reports indicated regulators were weighing permission for private issuance of yuan‑pegged stablecoins, suggesting a possible easing. By September 2025, authorities ordered issuers to pause or stop stablecoin trials. In January 2026 the PBOC took steps to boost the digital yuan’s attractiveness by allowing commercial banks to pay interest on digital‑yuan wallets.
The joint statement reiterates China’s priority on sovereign digital currency development and tight supervision of private digital‑asset initiatives, making clear that any RMB‑linked stablecoins or tokenized RWAs must receive prior approval before issuance or circulation.
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