China has once again stepped up its crackdown on the crypto sector and reaffirmed its existing Bitcoin ban. In a joint statement, the People’s Bank of China and several other authorities said that domestic companies, as well as overseas entities they control, are prohibited from issuing cryptocurrencies abroad without official approval.
Regulators are placing particular emphasis on stablecoins and tokenized real-world assets (RWAs). The issuance of yuan-pegged stablecoins outside China is strictly prohibited unless explicitly authorized by the authorities. Officials justify the move by citing risks to China’s monetary sovereignty and financial stability.
The authorities reiterated that cryptocurrencies such as Bitcoin, Ether, and stablecoins do not have legal tender status in China. Related business activities continue to be classified as illegal financial operations and therefore fall under the Bitcoin ban in force since 2021.
Offshore companies are also facing increased scrutiny. They are not allowed to provide crypto-related services to customers on the Chinese mainland if such activities violate national regulations.
In addition, regulators are targeting the tokenization of real-world assets. According to officials, such structures may constitute unauthorized capital raising and are prohibited without approval through state-approved financial infrastructure.
These measures come amid a period of heightened market turbulence. Since its peak in October, Bitcoin has lost more than 40%, dragging the broader crypto market lower. According to Bloomberg, the sell-off has erased roughly $2 trillion in market capitalization.
With this renewed regulatory tightening, Beijing is sending a clear signal to investors and companies: despite growing global adoption, Bitcoin remains unwelcome in China, as the state continues to strengthen its control over digital financial flows.
