China has doubled down on its hardline crypto stance, issuing a fresh multi-agency directive that tightens enforcement and explicitly bans unauthorized overseas token issuance and yuan-linked stablecoins, Bloomberg reported on Feb. 5, 2026.
Beijing Moves to Close Crypto Loopholes With New Multi-Agency Notice
China’s central bank, the People’s Bank of China (PBOC), reportedly joined seven other regulatory bodies in releasing a joint notice reinforcing the country’s long-standing ban on cryptocurrency-related activity while closing what regulators see as lingering loopholes.
According to the report from Bloomberg journalist Foster Wong, the notice extends China’s 2021 prohibition to cover offshore digital token issuance by domestic firms and any yuan-pegged stablecoins issued without official approval.
The directive reiterates that all virtual currency-related business activities remain illegal financial operations under Chinese law, including trading, market-making, derivatives, and token issuance.
Regulators said foreign platforms serving mainland users would also fall under scrutiny, signaling a coordinated enforcement push rather than symbolic rulemaking. A key focus of the notice is overseas activity.
Domestic companies-and offshore entities they control-are barred from issuing digital tokens abroad without regulatory sign-off, a move aimed squarely at tokenized real-world assets and cross-border fundraising structures.
Authorities also prohibited the issuance of yuan-linked stablecoins overseas, citing risks to monetary sovereignty and capital controls, Wong reported. Regulators framed the crackdown as a defensive measure against money laundering, illegal fundraising, and speculative trading, while emphasizing the need to protect financial stability and national security.
Stablecoins, in particular, were flagged as a channel for illicit cross-border flows and regulatory arbitrage. The move also reinforces Beijing’s preference for state-controlled digital money.
China continues to promote its central bank digital currency, the e-CNY or the digital yuan, positioning it as the only acceptable digital alternative to cash while keeping private crypto firmly on the sidelines.
While the announcement triggered little immediate reaction in global crypto markets, analysts say it sends a clear message: China’s crypto ban is not softening-it is getting more precise, more global, and far less forgiving.
FAQ ❓
- What did China announce on Feb. 5, 2026?
China issued a joint notice reinforcing its crypto ban and restricting offshore token issuance and yuan-linked stablecoins. - Who issued the new crypto directive?
The notice was led by the People’s Bank of China alongside seven other regulatory agencies. - Are yuan-backed stablecoins now banned?
Yes, unauthorized overseas issuance of yuan-linked stablecoins is explicitly prohibited. - Does this change China’s stance on crypto trading?
No, all crypto-related activities remain illegal under existing Chinese law.
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2026-02-06 19:12