China reaffirms crypto ban blocking token issuance, trading, mining and unapproved stablecoins with strict nationwide enforcement.
China’s central bank and financial regulators have restated strict controls on crypto activities.
Authorities confirmed that virtual currencies are not legal tender. They also said related business activities remain illegal.
The statement signals tighter enforcement across domestic and overseas-linked operations.
Ban Expanded to Issuance and Controlled Overseas Entities
The People’s Bank of China said domestic entities cannot issue virtual currencies without approval.
It also extended the rule to overseas entities controlled by Chinese firms. The restriction covers tokens, stablecoins, and similar instruments.
Regulators said any issuance must follow designated approval channels. Activities outside approved frameworks are prohibited.
Authorities emphasized that crypto issuance poses financial and security risks.
Officials said the ban applies regardless of where issuance occurs. Control and benefit links to domestic entities fall under supervision. This approach aims to close regulatory gaps.
Trading, Mining, and Stablecoins Face Renewed Enforcement
According to Wu Blockchain, authorities reiterated a blanket ban on crypto trading and mining.
Regulators said exchanges and intermediaries cannot provide related services or offer payment support and marketing.
Regulators addressed stablecoins linked to the renminbi. Regulators said authorities prohibit unapproved RMB-linked stablecoins and ban their issuance and circulation without approval.
Officials cited risks including money laundering and fraud. They also referenced unauthorized cross-border transfers.
Stablecoins were included due to settlement and transfer features.
Tokenization and RWA Projects Under Tight Limits
Regulators dealt with crypto and RWA products. They said tokenization is generally prohibited. Exceptions require explicit approval under designated infrastructure.
Authorities said approved projects must operate within defined systems. These systems include regulated financial platforms. Projects outside these channels are not permitted.
Officials linked tokenization risks to investor protection. They also referenced financial stability concerns. Oversight will remain strict and coordinated.
Related Reading: China Expands Crypto Crackdown with New Ban on Personal Holdings
Coordinated Enforcement and Public Education Measures
Enforcement will involve central and local authorities. Agencies will share information and coordinate actions. Offshore operations linked to domestic entities will be watched.
Regulators said financial crimes will face closer look. These include fraud and illegal gathering donations. Cross-border flows will receive added attention.
Authorities also announced public education efforts. Campaigns will explain risks and legal boundaries. The goal is to reduce participation in illegal activities.
Officials stated that crypto is not legal tender. They repeated that virtual currencies cannot move around as money. Payments and pricing in crypto remain banned.
The statement reflects flow with prior policy. It also signals renewed enforcement focus. Authorities aim to maintain financial order and control risks.
China’s approach emphasizes compliance and guidance. Regulators expect market participants to follow existing rules. Violations may result in penalties under implement laws.
Source: https://www.livebitcoinnews.com/chinas-central-bank-cracks-down-on-crypto-and-stablecoin-issuers/
