China Expands Crypto Ban to Include Real-World Asset Tokenization and Yuan Stablecoins
Beijing tightens restrictions on emerging crypto segments while reiterating blanket prohibition
The expanded restrictions target emerging segments of the crypto industry that had operated in a legal gray area. RWA tokenization involves representing traditional assets like real estate or bonds on blockchain networks.
China's move to specifically prohibit offshore yuan stablecoins suggests concern about potential capital flight and monetary policy circumvention through digital assets.
The country has maintained a strict stance against cryptocurrency since banning mining and trading in 2021, though enforcement has varied in practice.
Analysis
Why This Matters
China's regulatory approach often signals the direction of global crypto policy discussions.
Background
RWA tokenization has attracted significant investment as a way to bring traditional finance to blockchain rails.
What to Watch
Whether other jurisdictions follow China's lead in restricting RWA tokenization.