Chinese regulators have expanded their crackdown on cryptocurrencies to cover stablecoins and tokenized assets.
“Recently, under the influence of various factors, speculative activities related to virtual currencies and tokenization of real-world assets have occurred frequently, posing new challenges and new situations in risk prevention and control,” said regulators including the People’s Bank of China (PBOC) and the China Securities Regulatory Commission. notice Friday (February 6).
The announcement was cited in a report by Coindesk, which noted that the ban extends to foreign entities and individuals offering such services in China. It also prevents domestic organizations from issuing digital currencies abroad without regulatory approval.
The opinion claimed that stablecoins could duplicate critical functions of sovereign currency and thus pose a threat to monetary control. Thus, the new rules prohibit any entity, whether in China or abroad, from issuing a stablecoin linked to the RMB without government authorization.
Chinese companies that want to tokenize assets overseas do not have to obtain approvals or file with regulators, while their financial and technology partners will face increased compliance standards. The new rules follow the crypto mining ban and crypto-related business activities imposed in 2021.
The news follows reports last year that Chinese authorities, including the People’s Bank of China and the Cyberspace Administration of China, had asked the country’s big tech companies to wait. launch stablecoin projects.
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In other crypto regulation news, recent research by PYMNTS Intelligence and Citi discovered that the next step forward in blockchain would be shaped by regulationalthough lawmaker gridlock around key questions about stablecoin yield has left U.S. crypto market legislation in limbo.
“The debate has reached such a crescendo that Citi analysts have noted the increasing likelihood that passage of the CLARITY Act will be postponed beyond 2026although there is also a chance it will pass again this year,” PYMNTS wrote last week.
And in Europe, symbolic instruments such as the digital euro are gaining momentum as a payment sovereignty play.
“To put it bluntly, today we are very dependent on American companies for payments – too dependent. Payments are part of our critical infrastructure.” Burkhard Balzmember of the board of directors of German Federal Banksaid in a speech last month.
“And we really need to stand on our own two feet when it comes to critical infrastructure. digital euro would be the first and only digital payment method built on European infrastructure that could be used seamlessly across the Eurozone.
