China Prohibits Stablecoin and RWA Issuance by Both Foreign and Domestic Firms

The People's Bank of China (PBOC) has announced a ban on the issuance of stablecoins and tokenized real-world assets (RWAs) by both foreign and domestic companies. This move, reported on February 6, 2026, underscores China's ongoing efforts to tighten regulations around cryptocurrency activities.

This development is significant as it further limits the scope of crypto-related operations within China, affecting a wide range of businesses and potentially influencing global crypto markets. The ban reflects China's continued hardline stance on digital currencies and its focus on maintaining financial stability.

Key details

• The PBOC's ban applies to both foreign and domestic companies operating within China.
• Stablecoins and tokenized real-world assets are specifically targeted under this regulation.
• The announcement did not specify the penalties for non-compliance.
• The regulation is part of broader efforts to control financial risks associated with cryptocurrencies.
• Effective immediately, companies must cease issuance of these digital assets.

Background

China has a history of stringent regulations on cryptocurrencies, having previously banned initial coin offerings (ICOs) and cryptocurrency exchanges. This latest move is part of a broader strategy to mitigate financial risks and maintain control over monetary policy.

The decision aligns with China's previous actions to curb speculative trading and protect its financial system from potential disruptions caused by digital currencies.

Globally, the regulation of stablecoins and tokenized assets is a growing concern, with various jurisdictions exploring different approaches to manage these innovations.

Industry impact

The ban is expected to have a significant impact on crypto businesses operating in or with connections to China. Companies involved in the issuance of stablecoins and RWAs will need to reassess their business strategies and compliance frameworks.

There may be increased operational costs as firms navigate the regulatory landscape and seek alternative markets. Additionally, this could lead to a reduction in the availability of stablecoins and tokenized assets within China, affecting liquidity and market dynamics.

Globally, the ban could influence other jurisdictions to consider similar measures, potentially affecting the broader crypto market.

What's next

• Companies will need to comply with the ban immediately, ceasing issuance activities.
• Industry stakeholders may seek clarification on enforcement and potential penalties.
• Potential legal challenges or appeals could arise as affected entities respond to the regulation.
• Observers will watch for any further regulatory developments from China impacting the crypto sector.
• Other countries may evaluate their own regulatory approaches to stablecoins and RWAs.

Legal Disclaimer

This article is for informational purposes only and does not constitute legal, tax, or financial advice. Regulatory requirements vary by jurisdiction and individual circumstances. Readers should consult qualified legal and tax professionals for guidance specific to their situation.

Sources

• https://cointelegraph.com/news/china-bans-stablecoin-rwa-foreign-domestic
• https://www.coindesk.com/policy/2026/02/06/china-expands-crypto-crackdown-to-stablecoins-asset-tokenization