China Tightens Grip on Offshore Crypto and Tokenized Assets
Chinese authorities are drawing a harder line around digital assets, introducing measures that effectively extend domestic crypto restrictions to overseas activity tied to Chinese firms.
Key Takeaways
- China is blocking overseas crypto and token issuance by China-linked entities without approval.
- Yuan-linked stablecoins issued offshore are banned unless explicitly authorized.
- Real-world asset tokenization is now treated as a high-risk activity unless approved by regulators.
The latest move signals that Beijing is no longer focused only on what happens inside the mainland, but also on how China-linked entities operate abroad.
According to new guidance led by the People’s Bank of China, mainland companies – along with offshore entities they control – are barred from issuing cryptocurrencies overseas unless they receive explicit authorization.
By including foreign subsidiaries and controlled entities, regulators are closing a route that had allowed token issuance to shift offshore while remaining connected to China.
Yuan-Linked Stablecoins Face a Hard Stop
The rules take a particularly firm stance on yuan-pegged stablecoins. Any offshore issuance of stablecoins linked to the Chinese currency is now prohibited without approval, with regulators pointing to risks surrounding monetary sovereignty. The message is clear: representations of the yuan, digital or otherwise, cannot circulate outside state oversight.
Officials said recurring speculation around cryptocurrencies and real-world asset tokenization has complicated risk management and introduced new vulnerabilities. In their view, the blending of blockchain technology with financial assets creates challenges that demand tighter supervision, especially when such activity could threaten financial order or national security.
The notice reiterates Beijing’s long-standing position that cryptocurrencies – including Bitcoin and Ether – do not have the same legal status as fiat money. Any crypto-related business conducted within mainland China remains classified as illegal financial activity. Offshore platforms are also warned against offering services to onshore clients.
Real-World Asset Tokenization Under Scrutiny
Beyond cryptocurrencies, regulators turned their attention to real-world asset tokenization. They cautioned that tokenizing assets, as well as providing related intermediary or technical services, could be treated as illegal fundraising unless carried out under designated and approved financial infrastructure.
This suggests authorities are aiming to prevent blockchain-based financing models from resurfacing under new labels.
The regulatory tightening comes amid heightened turbulence across global crypto markets, where sharp price swings have reignited concerns over investor protection and capital flows. Against this backdrop, Beijing appears intent on removing any remaining ambiguity around its stance.
Overall, the latest measures reinforce a familiar policy direction: digital asset innovation linked to China will be tightly constrained, carefully vetted, and allowed to operate only within boundaries defined by the state.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
