In September 2026, Chinese media once again returned to discussing the February notice from the People's Bank of China and seven other agencies — a document numbered Yinfa No. 42. It expands the ban on cryptocurrencies, including stablecoins pegged to the yuan, and on the tokenization of real-world assets. Apparently, Beijing does not intend to cede even the slightest part of its financial sovereignty.
The document explicitly prohibits the issuance of yuan-backed stablecoins without special permission. The ban extends not only to mainland China but also to overseas branches of Chinese companies. Financial institutions have been instructed not to provide services to crypto businesses. By all appearances, regulators see private stablecoins as a direct threat to control over money circulation and to capital outflow.
Behind this position lies a clear logic: the digital yuan is already being developed as a state alternative. Private stablecoins, especially those pegged to the yuan, could undermine the central bank's monopoly and complicate the fight against money laundering. At the same time, Beijing continues to study blockchain for cross-border payments — but strictly under its own control.
For the ordinary person, this means that investments in crypto assets remain a high-risk zone. Those who keep their savings in stablecoins or plan to tokenize real estate face legal uncertainty and potential fines. The analogy is simple: like water in a closed system of pipes, money in China must flow only through official channels.
The global stablecoin market, meanwhile, is growing, and Hong Kong has already issued its first licenses. The contrast with mainland China is becoming ever sharper. Chinese media emphasize: the ban is not a temporary measure but a long-term strategy for protecting financial stability.
Ultimately, the regulatory news shows that Beijing is choosing control over innovation. For those shaping their personal finances, this is a signal: digital assets require particular caution and an understanding of local rules.
