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Crypto trading, mining, stablecoins and onshore RWA tokenisation are all banned; the state backs an interest-bearing e-CNY instead.

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0Licensed crypto exchanges or stablecoin issuers onshore
8Agencies that signed Notice No. 42, replacing the 2021 ban
16.7tn yuanCumulative e-CNY transaction value

Mainland China was once the centre of the crypto world, home to the largest exchanges and most of Bitcoin's mining power.

Beijing tightened step by step: a 2013 notice barred banks from Bitcoin business, and on 4 September 2017 seven regulators banned initial coin offerings and ordered onshore exchanges to stop converting yuan into tokens.

Within weeks the big Beijing exchanges, Huobi and OKCoin, announced they would end yuan trading.

Read the full story

The decisive break came in 2021.

In May the State Council's financial stability committee called for a crackdown on Bitcoin mining and trading, and in September the People's Bank of China (PBoC) and nine other bodies declared all virtual currency business illegal, including services offered by offshore exchanges to mainland residents.

The National Development and Reform Commission (NDRC) ordered mining shut down the same week.

In 2025 a rush of mainland firms into Hong Kong stablecoins and real-world asset (RWA) tokenisation prompted a second wave.

Regulators reportedly told brokerages to pause Hong Kong RWA work in September 2025, a PBoC-led meeting in November declared stablecoins a form of virtual currency, and on 6 February 2026 eight agencies issued Notice No. 42, which replaces the 2021 notice, bans onshore RWA tokenisation outside approved infrastructure and bars anyone from issuing a yuan-pegged stablecoin offshore without approval.

On the same day the China Securities Regulatory Commission (CSRC) opened a filing route for tokens backed by onshore assets but issued offshore.

For builders the onshore answer is no. There is no licence to trade, custody or issue crypto, contracts to invest in it are void, and company names may not even contain the word stablecoin.

The state's alternative is the e-CNY: it passed 16.7 trillion yuan in cumulative transactions by November 2025, and since 1 January 2026 bank-held e-CNY wallets pay interest.

The only open doors are the CSRC offshore filing route and state-built e-CNY and blockchain platforms.

Who regulates

  • PBoCPeople's Bank of China

    In charge of

    China's central bank, under the State Council. It sets monetary policy, issues the yuan, runs the payment system and leads financial stability and anti-money laundering work.

    On crypto

    Led the 2017 ICO ban, the 2021 Notice No. 237 and its replacement, Notice No. 42 of 6 February 2026, which bans all virtual currency business and any offshore yuan stablecoin without approval. It issues the e-CNY, whose bank wallets have paid interest since 1 January 2026.

    PBoC website
  • CSRCChina Securities Regulatory Commission

    In charge of

    China's securities regulator, under the State Council. It supervises stock and futures markets, registers securities offerings and oversees listed companies, brokers and fund managers.

    On crypto

    Co-signed Notice No. 42 and on 6 February 2026 opened the only sanctioned tokenisation route: a filing regime for asset-backed security tokens issued offshore using mainland assets. In September 2025 it reportedly told brokerages to pause Hong Kong RWA projects.

    CSRC website
  • NDRCNational Development and Reform Commission

    In charge of

    China's economic planning agency. It drafts five-year plans, approves major investment projects, sets industrial and energy policy and registers mainland firms' foreign borrowing.

    On crypto

    Issued the September 2021 notice banning new crypto mining projects and phasing out existing ones; Notice No. 42 reaffirms it and bars onshore sales of mining machines. It also supervises security tokens structured as external debt, alongside SAFE.

    NDRC website
  • NFRANational Financial Regulatory Administration

    In charge of

    Set up in 2023 to replace the banking and insurance regulator. It licenses and supervises banks, insurers, trust companies and other financial firms outside the securities sector.

    On crypto

    Co-signed Notice No. 42 and enforces its rule that banks and insurers may not open accounts, settle payments, accept crypto as collateral or offer insurance for any virtual currency business.

    NFRA website
  • CACCyberspace Administration of China

    In charge of

    China's internet regulator. It controls online content, enforces cybersecurity and data rules and requires online information services to file or be licensed.

    On crypto

    Co-signed the 2017 ICO ban and runs the 2019 filing regime for blockchain information services, which requires real-name user checks and security assessments. It closes websites, apps and accounts that promote crypto trading or RWA tokens.

    CAC website

What to watch

  • Whether the CSRC publishes its first completed filings under the February 2026 guideline for offshore asset-backed security tokens.
  • Any approval of an offshore yuan-pegged stablecoin, which Notice No. 42 makes conditional on regulators' consent; none has been granted.
  • Take-up of the interest-bearing e-CNY 2.0 framework and cross-border use through the Shanghai e-CNY International Operations Centre and mBridge.
  • Enforcement under Notice No. 42 against offshore platforms, mining and RWA promoters serving mainland users.

Quick answers

Who regulates crypto in China?

Five authorities shape crypto rules in China. PBoC (People's Bank of China): leads the virtual currency ban and its enforcement mechanism, and issues and runs the e-CNY. CSRC (China Securities Regulatory Commission): leads the RWA tokenisation workstream under Notice No. 42 and runs the offshore security token filing regime. NDRC (National Development and Reform Commission): enforces the ban on crypto mining and oversees external debt issued in tokenised form. NFRA (National Financial Regulatory Administration): supervises banks and insurers, which may not provide accounts, settlement, collateral or insurance for crypto business. CAC (Cyberspace Administration of China): registers blockchain information services and closes websites and apps that promote crypto or RWA tokens.

Do crypto exchanges need a licence in China?

There is no licence to apply for. All crypto exchange, brokerage and pricing services are illegal; offshore platforms may not serve residents.

Are stablecoins regulated in China?

No. Stablecoins are virtual currency; offshore yuan stablecoins need approval and none has been given. The most recent official text is A Joint Meeting convened to Curb Speculations in Virtual Currency Trading (People's Bank of China (PBoC), 28 Nov 2025, guidance). Four Pillars rates its stablecoin regime in China as prohibited (reviewed 5 Oct 2026).

How is crypto taxed in China?

No crypto-specific tax guidance exists because the underlying activity is illegal onshore. Four Pillars rates tax clarity in China as restricted (reviewed 5 Oct 2026).

Can real-world assets be tokenised in China?

Only in narrow cases. Onshore RWA banned except on approved infrastructure; offshore ABS tokens need a CSRC filing. Four Pillars rates tokenisation and real-world assets in China as restricted (reviewed 5 Oct 2026).

What changed most recently in China's crypto rules?

6 Feb 2026: Notice No. 42 extends the ban to RWA tokenisation and offshore yuan stablecoins. Eight agencies replaced the 2021 notice; the CSRC issued its offshore security token guideline the same day. 1 Jan 2026: e-CNY 2.0 framework takes effect. Banks now pay interest on real-name e-CNY wallets, turning it from digital cash into deposit money.

What should companies watch next in China?

Whether the CSRC publishes its first completed filings under the February 2026 guideline for offshore asset-backed security tokens. Any approval of an offshore yuan-pegged stablecoin, which Notice No. 42 makes conditional on regulators' consent; none has been granted. Take-up of the interest-bearing e-CNY 2.0 framework and cross-border use through the Shanghai e-CNY International Operations Centre and mBridge.

Timeline

  1. Notice No. 42 extends the ban to RWA tokenisation and offshore yuan stablecoins

    Eight agencies replaced the 2021 notice; the CSRC issued its offshore security token guideline the same day.

  2. e-CNY 2.0 framework takes effect

    Banks now pay interest on real-name e-CNY wallets, turning it from digital cash into deposit money.

  3. PBoC-led meeting declares stablecoins a form of virtual currency

  4. e-CNY International Operations Centre opens in Shanghai

    It runs cross-border payment, blockchain service and digital asset platforms for the e-CNY.

  5. Brokerages reportedly told to pause Hong Kong RWA projects

    Reported guidance from the CSRC to mainland securities firms; no public document was issued.

  6. Ten agencies declare all virtual currency business illegal

    Notice No. 237 covered offshore exchanges serving residents; the NDRC ordered mining shut the same day.

  7. PBoC publishes the e-CNY white paper

    It set out the two-tier design of the retail digital yuan, then in pilots across several cities.

  8. State Council committee orders a crackdown on Bitcoin mining and trading

  9. Seven regulators ban ICOs

    Token fundraising was declared illegal and onshore platforms had to stop yuan-to-crypto trading.

  10. Five regulators bar banks from Bitcoin business

    The notice defined Bitcoin as a virtual commodity that cannot circulate as money.

Cite this page: Four Pillars Asia Digital Asset Policy Center, “China crypto regulation”, reviewed 5 Oct 2026, https://policy.4pillars.io/china. Free to reuse with attribution; also as markdown and JSON.

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