China formalizes new bans on yuan-backed stablecoins, crypto trading and RWA tokenization

China’s central bank, together with seven government bodies, issued a joint statement reaffirming strict prohibitions on cryptocurrency activity and introducing new limits on offshore issuance: domestic entities are banned from issuing digital tokens abroad without approval, and the export of yuan‑backed stablecoins that lack government authorization is explicitly blocked ^[1][2].

The notice formalizes a broad definition of illegal financial activity that covers crypto trading, issuance and tokenization of real‑world assets (RWA), and it extends legal liability across the entire service stack involved in such operations ^[3][4].

Authorities also reiterated that virtual currencies may not be used as currency under Chinese regulation and signaled stepped‑up enforcement through interdepartmental cooperation and enhanced monitoring to detect and block prohibited activity, including previously targeted areas such as mining and trading ^[4][2][3].

Taken together, the measures tighten existing bans and close offshore avenues for yuan‑linked stablecoins and RWA token issuance unless explicit government approval is obtained ^[1][3].