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China steps up crypto crackdown, will vet real-world asset tokens
The People’s Bank of China and seven agencies banned onshore real-world asset tokenization and offshore yuan stablecoins to curb speculative crypto risks, regulators said.
- On Friday, Chinese authorities issued a People’s Bank of China-led notice tightening virtual currency rules and banning onshore real-world asset tokenisation and related services.
- Officials cited risks from stablecoins and frequent speculative trading, saying recently such activities around virtual currencies and real-world asset tokenisation occurred frequently, creating new risk challenges, the notice said.
- The notice requires offshore subsidiaries of Chinese financial institutions and intermediary and technology service providers to strengthen compliance under the 'same business, same risk, same rules' principle, and prohibits overseas entities from offering illegal RWA-tokenisation services to domestic firms.
- Domestic entities and their offshore subsidiaries now face restrictions on issuing virtual currencies overseas without approvals, and no entity may issue yuan-pegged offshore stablecoins without regulator consent.
- Seen in context of a multi-year crackdown, the rules build on the 2021 determination deeming crypto business illegal and the 2017 ICO ban, extending reach to foreign service providers and cross-border crypto services.
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The country reaffirmed its position that commercial activities related to digital currencies are "illegal financial activities."
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Total News Sources27
Leaning Left0Leaning Right3Center3Last UpdatedBias Distribution50% Center, 50% Right
Bias Distribution
- 50% of the sources are Center, 50% of the sources lean Right
50% Right
C 50%
R 50%
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