🇨🇳🚨 CHINA BANS UNAUTHORIZED YUAN STABLECOINS ABROAD 🚨🇨🇳
China has issued a severe ban against the unauthorized issuance of yuan (renminbi)-linked stablecoins abroad, as announced today, Friday, February 6, by eight authorities including the People's Bank of China (PBOC) and the China Securities Regulatory Commission.
This measure reinforces the 2021 crackdown on cryptocurrencies, declaring activities related to virtual currencies such as Tether illegal, in order to preserve monetary sovereignty and prevent systemic risks.
🔻Regulatory Measure Details
The joint statement prohibits domestic entities, individuals, and foreign subsidiaries from issuing yuan-pegged stablecoins without explicit approval, citing dangers such as money laundering, fraud, and illegal cross-border capital flows.
Stablecoins, acting as substitutes for legal tender, threaten national financial stability and require strict state controls; no intermediaries can facilitate such operations.
Monitoring of capital flows will be intensified, with coordinated enforcement between central and local authorities, including public education against illegal promotion.
🔻Implications for the Global Crypto Market
This move blocks the offshore expansion of yuan stablecoins, countering past rumors of possible state-backed stablecoins in Hong Kong or Shanghai, and strengthens the focus on the centralized digital yuan (e-CNY).
For the crypto sector, it reduces competition risks but increases volatility, exposing the system to money laundering and instability; traders and platforms must urgently adapt.