China Bans Unapproved Yuan-Pegged Stablecoins and Tokenized RWAs
What Did Chinese Regulators Announce?
China’s central bank and seven other regulatory agencies have formally banned the unapproved issuance of yuan-pegged stablecoins and tokenized real-world assets, closing the door on both domestic and offshore issuers viewking to link products to the renminbi.
The joint statement, published by the People’s Bank of China and co-signed by bodies including the Ministry of Industry and Information Technology and the China Securities Regulatory Commission, applies to any entity operating inside or outside the country. Regulators said no individual or organization may issue renminbi-linked stablecoins without explicit approval.
The announcement framed stablecoins as instruments that replicate state-issued money outside official channels. “Stablecoins perform some of the functions of fiat currencies in disguise during circulation and use,” the statement said, adding that issuance without consent from authorities is prohibited.
Investor Takeaway
Why Offshore Yuan Markets Are Also Affected
The scope of the ban extends beyond mainland China. Winston Ma, an adjunct professor at NYU Law School and a former managing director at China’s , said the rule applies across all renminbi-related markets.
“The Beijing crypto ban rule applies across all RMB-related markets, whether CNH or CNY,” Ma said. CNH refers to the offshore version of the yuan, which is used in international markets while still operating within China’s broader currency control framework.
By covering both onshore and offshore versions of the currency, regulators are viewking to prevent workarounds that could allow yuan-linked stablecoins to circulate outside mainland oversight. That approach reflects long-standing concerns that offshore instruments could fragileen capital controls or blur the boundary between state-issued money and private substitutes.
Ma described the move as part of a longer policy arc rather than a sudden change. “This is the latest step in a multi-year project: Keep speculative crypto outside the formal financial system, while actively promoting the usage of e-CNY, the sovereign CBDC issued by China’s central bank,” he said.
How This Fits China’s Digital Yuan Strategy
The stablecoin ban comes alongside renewed efforts to make China’s digital yuan more attractive for everyday use. Earlier this year, regulators approved a framework allowing commercial banks to share interest with clients holding balances in e-CNY wallets.
Taken together, the policies suggest a clear preference for state-controlled digital money over private tokenized alternatives. Stablecoins pegged to the yuan are treated as a potential challenge to monetary authority, while the digital yuan is being refined to meet similar user needs within a tightly supervised structure.
Investor Takeaway
Why Earlier Stablecoin Discussions Did Not Last
The announcement also settles speculation that emerged in mid-2025 about a possible policy reversal. At that time, reports suggested Chinese authorities were weighing whether to allow private companies to issue yuan-pegged stablecoins, a move that would have broken sharply with previous restrictions.
Those discussions proved short-lived. By September 2025, regulators instructed issuers to pause or stop trial programs, reaffirming existing limits rather than relaxing them. The new ban formalizes that stance and removes amlargeuity about the regulatory direction.
From Beijing’s perspective, allowing private yuan-linked tokens would complicate efforts to monitor money flows and enforce capital rules. The digital yuan, by contrast, offers programmable oversight and direct integration with the banking system, giving authorities tools that privately issued stablecoins do not.
What the Ban Means Going Forward
For , the decision reinforces China’s role as a regulatory outlier rather than a potential stablecoin hub. Issuers targeting yuan exposure will need to operate entirely outside Chinese jurisdiction, without any expectation of domestic approval.
The policy also sends a broader signal to other governments weighing how to handle currency-linked stablecoins. China’s approach treats them not as neutral financial innovations, but as substitutes for sovereign money that require firm control.
