China Delivers New Blow to Crypto: Decisions Announced

China Delivers New Blow to Crypto: Decisions Announced

China has once again clarified its tough stance on the cryptocurrency ecosystem. New regulations announced on February 6, 2026, completely ban internet companies from offering any crypto-related services, while also comprehensively targeting the issuance of unverified stablecoins and the tokenization of real-world assets (RWA). This move by Beijing stands out as one of the broadest steps in its gradually tightening anti-crypto policy in recent years.

Ban on Internet Companies

The new framework directly covers not only financial institutions but also technology and internet companies that form the backbone of the digital economy. Texts published by the People's Bank of China and related regulatory bodies explicitly prohibit internet companies from offering crypto wallets, facilitating crypto payments, or otherwise enabling crypto trading. This directly targets a broad technology ecosystem, including giant platforms like Alibaba, Ant Group, and Tencent. Authorities defend these bans on the grounds of protecting financial stability and preventing illicit capital movements. However, the prevailing view in the market is that the main motivation is the state's desire to maintain absolute control over monetary policy. Especially as the digital yuan (e-CNY) project progresses, it appears that no space is left for any digital currency or token structure originating from the private sector. Another critical pillar of regulation is stablecoins. The Chinese government has directly banned the issuance of yuan-referenced stablecoins without official approval. While stablecoins are becoming increasingly accepted globally for cross-border payments and digital finance infrastructures, Beijing positions these tools as a potential threat to financial sovereignty. This approach also reveals how low China's tolerance is for the emergence of an alternative digital payment ecosystem.

Comprehensive ban on RWAs

Perhaps the most striking decision was the comprehensive ban on the tokenization of real-world assets. RWA models, which refer to the conversion of real estate, commodities, or financial securities into tokens on the blockchain, are completely banned within China's borders. For RWA platforms operating abroad, the condition is that they can only operate with official approval and under strict supervision. A joint statement by seven major financial associations in China highlighted the dangers of RWA tokenization, including the risk of counterfeit assets, transparency issues, and excessive speculation. These steps also reiterate the fact that cryptocurrency trading remains illegal in the country. General bans initiated in 2021 were intensified throughout 2025, and this final move in 2026 indicates the complete closure of even indirect access channels through internet companies. The official statement reiterates that cryptocurrencies are not legal tender and will not be accepted as a means of payment.

#crypto#china#china crypto#china crypto ban
CalendarPublish Date
6 Feb 2026
CategoryCategory
Reading timeReading Time
2 Minutes
AuthorAuthor Name
JrKripto
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