China Tightens Rules on RMB-Pegged Stablecoins
- China imposes stricter regulations on RMB-pegged stablecoins.
- Involvement of major government agencies.
- Prohibitions extend to unapproved domestic and offshore issuance.
The People’s Bank of China, along with seven other agencies, announced new regulations on February 6, 2026, tightening control over RMB-pegged stablecoins and tokenized assets.
These regulations underscore China’s cautious approach to digital currency, aiming to preserve monetary sovereignty while opening pathways for compliant financial innovations, affecting global stablecoin markets.
China’s central bank has announced new restrictions on RMB-pegged stablecoins, affecting both domestic and foreign entities. The move aims to regulate tokenized assets like bonds and equities.
The People’s Bank of China, along with seven other agencies, issued a joint statement prohibiting any unapproved issuance. Winston Ma, Legal Expert and Former Sovereign Wealth Fund Official, commented, “The ban applies to both onshore and offshore RMB versions (CNH).” – source
The new rules impact the stablecoin market significantly, affecting entities in China and abroad. The regulations reaffirm the non-legal tender status of Bitcoin and Ethereum, maintaining past prohibitions.
These measures reinforce China’s stance on cryptocurrency regulations. While Bitcoin and Ethereum services remain banned, the rules indicate a cautious openness for compliant RMB stablecoins with official approval.
The issuance ban is part of China’s broader cryptocurrency strategy, including past prohibitions dating back to 2021. These actions support the state-backed digital yuan, with some banks recently authorized to offer interest on digital wallets.
By enforcing these measures, China aims to safeguard its financial stability and monetary sovereignty. The regulatory approach demonstrates controlled flexibility by introducing options for compliant entities, potentially influencing global crypto regulations.
