#ChinaShapesCryptoRules

China has sharply escalated its crypto ban with new rules issued Feb 6, 2026—closing offshore loopholes and targeting yuan stablecoins and RWA tokenization for the first time.

Eight central agencies (PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC, SAFE) jointly issued the notice . This is not a shift—it is an explicit extension of the 2021 ban into previously ambiguous areas .

What is newly banned or clarified

1️⃣ Yuan stablecoins (absolute ban)
No entity or individual—onshore or offshore—may issue a yuan-pegged stablecoin abroad without approval . Rationale: stablecoins perform monetary functions and touch currency sovereignty .

2️⃣ Overseas issuance by Chinese entities
Domestic entities and their controlled offshore vehicles cannot issue virtual currencies abroad without approval . Reasoning: crypto ignores borders, risks transmit back .

3️⃣ RWA tokenization (severely restricted)
In-China RWA tokenization activities—including中介 (intermediary) and IT services—are illegal financial activities . Exceptions only possible via "specific financial infrastructure" with explicit approval .

Outbound RWA deals using onshore assets as backing (debt形式, securitization-like, equity-like) require strict NDRC, CSRC, SAFE approval and filing . CSRC issued companion guidance Feb 6 mandating filing + six absolute prohibitions (e.g., assets under investigation, national security concerns, prior financial crimes) .

4️⃣ Service provider liability
Internet platforms cannot provide venues, ads, traffic引流, or marketing for virtual currency or RWA activities .
Domestic entities assisting overseas firms in illegally serving China—even knowingly—face legal liability and criminal charges .

5️⃣ Corporate naming ban
Company/business scope names cannot contain "virtual currency," "crypto," "stablecoin," "RWA," etc .

6️⃣ Mining reaffirmed
NDRC-led shutdowns continue; no new projects, no矿机 sales in China .

Why this matters

· First time China explicitly asserts jurisdiction over offshore entities issuing yuan stablecoins .
· First comprehensive RWA tokenization ban + narrow exemption path .
· Hong Kong is the primary friction point: policy aims to prevent risk arbitrage via HK, and both onshore banks' HK subs and HK本地 firms are now expressly barred from marketing or servicing mainland clients .

Bottom line
China is not "shaping crypto rules" in the Western sense—it is extending its total ban extraterritorially to cover stablecoins, RWA, and offshore issuance by Chinese-linked entities.