Like clockwork, Chinese FUD is back just as Bitcoin enters bear market territory. Beijing has expanded the scope of its ban on cryptocurrencies, explicitly targeting the tokenization of real-world assets and unauthorized stablecoins tied to its currency.
China has just reminded the global market that its door to cryptocurrencies remains firmly closed. In a coordinated move involving the central bank and law enforcement, Beijing has expanded its long-standing ban on crypto to specifically target two growing sectors: tokenization of real-world assets (RWA) and offshore stablecoins pegged to the Chinese yuan.
JUST IN: China issued a joint regulatory notice in 2026 prohibiting the issuance of RMB-pegged stablecoins and RWA tokenization without prior approval. pic.twitter.com/qXvPSxa8pg
– David Lavi Mattan (@digitbtc) February 6, 2026
JUST IN: China issued a joint regulatory notice in 2026 prohibiting the issuance of RMB-pegged stablecoins and RWA tokenization without prior approval. DISCOVER: Best new cryptocurrencies to invest in in 2026
Although the country has technically banned crypto trading since 2021, this new directive closes specific loopholes that investors have used to trade digital assets abroad. For starters, this is a reminder that regulatory risks can vary significantly depending on where you are located and the projects in which you invest.
While the rest of the world sees RWA as a major opportunity to make finance more efficient, Chinese regulators see it as a threat to financial stability.
The ban also targets stablecoins linked to the yuan. Beijing fiercely protects its national currency and views unauthorized digital versions of the yuan as a direct challenge to its monetary sovereignty.
“Same activity, same risk, same rules”
On Friday, the People’s Bank of China (PBOC), along with the Ministry of Public Security and other leading agencies, issued a joint notice declaring these activities illegal. The message was clear: speculative activity linked to virtual currencies disrupts the financial order.
The directive applies the strict principle of “same activity, same risk, same rules”. This means that even if a company operates “offshore” (outside mainland China), it cannot issue tokens representing domestic Chinese assets or the yuan without explicit government approval.
The People’s Bank of China, #ChinaThe Hong Kong central bank and seven other government agencies issued a joint notice on preventing risks related to cryptocurrencies on Friday. The notice reminds that cryptocurrencies do not have the legal status of currency or money, carrying out related activities… pic.twitter.com/hIBk8BRET4
-Global Times (@globaltimesnews) February 6, 2026
According to The Block, the notice states:
“Without approval… no entity or individual, inside or outside of China, may issue offshore renminbi-linked stablecoins.”
This effectively prevents foreign entities from creating crypto products that track the Chinese economy for Chinese users. This is a significant escalation aimed at preventing capital flight and maintaining tight control over the national financial system.
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What this means for the crypto market
China’s crackdown highlights a growing divide in global regulation. While Beijing is strengthening the ban, its neighbor is taking the opposite approach. Hong Kong is actively building a regulated platform for digital assets, with stable licenses expected to be rolled out soon, creating a unique “one country, two systems” dynamic for crypto.
It’s interesting how China bans crypto at home, yet is still willing to invest in RWAs abroad.
This is not a rejection of RWAs, but rather a question of control.
They don’t want nationally open crypto markets, but they can easily gain exposure through regulated offshore channels.@Tokenfi –RWA pic.twitter.com/6aopImx8pP
– No Gork (@G_O_R_K) February 6, 2026
This contrast extends globally. In the United States, traditional financial giants are embracing technology, as evidenced by the recent Fidelity report stablecoin launch. However, regulatory clarity remains an issue in the West, as the blocking of the Lummis-Gillibrand Stablecoin Act shows.
Meanwhile, other emerging markets are experimenting rather than banning. For example, projects like the South African stablecoin ZARu show how other countries are integrating local currencies into their chain.
For you as an investor, this news reminds you that although technology is global, the rules are local. Projects heavily reliant on Chinese cash or assets could face new hurdles, while those operating in regulated jurisdictions such as Hong Kong or Europe could gain legitimacy.
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The post China Reiterates Crypto Ban While Cracking Down on Tokenized Assets and Yuan Stablecoins appeared first on 99Bitcoins.
