China Tightens Crypto Crackdown: PBoC Targets RWA Tokens, Stablecoins, Mining & Trading

Key Takeaways:

• The immediately remarkable point is that the new announcement from the central bank and competent authorities informs the continuous restriction on crypto trading, mining operations and token issuance limitation in China.
• RMB-pegged stablecoins and most of Real World Assets (RWA) tokenization activities are still strictly forbidden, unless officially approved by management authorities.
• Financial institutions, internet firms, and intermediaries are barred from offering services tied to crypto or related products.

After they cautioned that digital money and real world assets tokenization were spiraling out of control, China has now gone all the way in regard to digital assets. The most recent collaborative notice informs all that they are going to shore up the regulations concerning trading, mining, cross-border movements, and the launching of more stablecoins.

Read More: China Issues Sweeping Crackdown: RWA Tokenization and Crypto Activities Declared High-Risk, Unapproved

PBBS recently partnered with a number of national utilities to educate them that Bitcoin, Ether, stablecoins, and the entire industry, none of them is legal currency. Officials stressed that these assets cannot circulate as money or be used for payment within the country.

Authorities described crypto-related services including exchange operations, token financing, pricing services, and derivatives trading as illegal financial activity. Domestic and overseas entities are banned from offering such services to mainland users without approval.

The notice also highlights that financial institutions and payment providers must not open accounts, process settlements, or offer custody linked to virtual currency transactions. Insurance products and collateral services tied to crypto are also prohibited.

Regulators placed special focus on stablecoins and tokenized assets. RMB-linked stablecoins are explicitly restricted unless regulators grant approval, with authorities warning that such products may imitate some functions of fiat currency.

China’s regulators confirmed that mining remains a primary target. Provincial governments are required to shut down existing mining operations and prevent new projects from launching. Manufacturers are also restricted from offering mining hardware services domestically.

The policy extends oversight to offshore structures connected to Chinese entities. Companies or individuals are not allowed to issue tokens abroad without permission if they remain under domestic control. The regulators stated that they would coordinate tracking in different departments and combine Internet surveillance, economic surveillance, and law enforcement-like arrangements.

Officials emphasized risk- surveillance procedures and computer consultation interagency to pick off suspicious actions faster. Cryptography-related offenses such as fraud, innate fund-raising, money-laundering will receive a more thorough scrutiny.

Read More: Trump Pledges to Sign CLARITY Act, Fast-Tracking U.S. Crypto Rules as China Accelerates

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