Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Chinese authorities have taken steps to strengthen control… Digital assetswhich banned the issuance of unlicensed stablecoins pegged to the yuan outside of China, and added restrictions to token assets pegged to the country’s currency.
Key points:
- China has banned unsecured yuan-linked stablecoins and related assets to protect monetary authority.
- Officials are determined to ban the use of cryptocurrencies for payments while promoting the government-backed digital yuan.
- Japan and Hong Kong are moving towards stablecoin-driven markets, reflecting the regional policy divide.
In a joint statement released on Friday, the People’s Bank of China (PBOC) and seven government agencies said that individuals and companies, domestic or foreign, cannot issue fixed income pegged to the renminbi without government approval.
Officials argue that these signals mimic the activities of large financial institutions and could threaten monetary authority.
China says stablecoins pegged to the yuan threaten financial stability
Stablecoins linked to fiat currencies “perform some of the functions of fiat currencies,” the notice said, warning that their trading outside of the regulatory framework would be difficult.
The regulations also cover services related to financial reporting, including financial reporting Blockchain For bonds or stocks.
Foreign organizations are not allowed to supply essential goods to users inside China without permission from the authorities.
Beijing has reaffirmed its old stance on cryptocurrency payments, saying that assets such as… Bitcoin andEthereum It does not have a legal status, and conducting other activities or activities is an illegal activity.
This decision builds on the total ban introduced by the central bank in 2021, which effectively removed cryptocurrency sales and payments from the domestic financial system.
Winston said Ma, a legal expert and head of the fund, said the restrictions apply to both onshore and offshore renminbi.
The offshore yuan, known as CNH, was created to facilitate exchange of foreign currencies while maintaining currency stability.
This appears to be part of a broader plan to reduce private digital currencies while promoting the state-backed yuan.
China has spent several years developing its central e-CNY digital currency, and recently allowed commercial banks to share profits with users who have digital yuan wallets in an effort to expand its adoption.
Japan and Hong Kong will adopt stablecoin regulations while China will strengthen regulations
Elsewhere in Asia, policymakers have taken a different approach. Japan is set to issue regulations for stablecoins in 2023, while Hong Kong plans to introduce stablecoin licenses this year.
China briefly explored allowing private companies to issue yuan-linked tokens in 2025, but later suspended pilot programs.
Last year, the People’s Bank of China unveiled a plan that will allow commercial banks to charge interest on deposits held in digital wallets from January 1, 2026.
The change will move e-CNY beyond its original role as a digital currency and integrate it with banking services, said Lu Li, deputy governor of the People’s Bank of China.
The trade price has arrived Stablecoins Global growth will reach $33 trillion in 2025, registering a 72% increase from last year, according to Bloomberg data compiled by Artemis Analytics.
I thought USDC As the most used stablecoin in terms of trading volume, it managed $18.3 trillion, while Tether’s USDT managed $13.3 trillion, although it remained ahead of the market capitalization at $187 billion.
The increase occurred after the introduction of the GENIUS law in July 2025, the first regulation in the United States of stablecoins issued for payment.
A note China is banning stablecoins not denominated in yuan from abroad to protect financial stability appeared for the first time Cryptonews Arabic.
