# China crypto regulation From the Four Pillars Asia Digital Asset Policy Center. Cite as: Four Pillars Asia Digital Asset Policy Center, "China crypto regulation", reviewed 2026-10-05, https://policy.4pillars.io/china. Free to reuse with attribution: cite "Four Pillars Asia Digital Asset Policy Center" and link to the page the fact comes from (each market has its own URL), and to the primary source where one is given. Terms: https://policy.4pillars.io/developers#attribution Page: https://policy.4pillars.io/china Region: East Asia. Last reviewed: 2026-10-05. > Crypto trading, mining, stablecoins and onshore RWA tokenisation are all banned; the state backs an interest-bearing e-CNY instead. 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. 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. ### Snapshot - Exchange licensing: Prohibited. All crypto exchange, brokerage and pricing services are illegal; offshore platforms may not serve residents - Stablecoin regime: Prohibited. Stablecoins are virtual currency; offshore yuan stablecoins need approval and none has been given - Tokenisation & RWA: Restricted. Onshore RWA banned except on approved infrastructure; offshore ABS tokens need a CSRC filing - Retail access: Prohibited. No legal onshore venue; contracts to invest in crypto are void and losses fall on the investor - Tax clarity: Restricted. No crypto-specific tax guidance exists because the underlying activity is illegal onshore ### Quick answers **Is crypto legal in China?** No. No legal onshore venue; contracts to invest in crypto are void and losses fall on the investor. Four Pillars rates retail access in China as prohibited (reviewed 5 Oct 2026). **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. ### Key numbers - 0 Licensed crypto exchanges or stablecoin issuers onshore (as of 2026-10-05) - 8 Agencies that signed Notice No. 42, replacing the 2021 ban (as of 2026-02-06) - 16.7tn yuan Cumulative e-CNY transaction value (as of 2025-11-30) - 230m Personal e-CNY wallets opened via the e-CNY app (as of 2025-11-30) ### 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. ### Regulators - **PBoC**, People's Bank of China: Leads the virtual currency ban and its enforcement mechanism, and issues and runs the e-CNY. 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. 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. - **CSRC**, China Securities Regulatory Commission: Leads the RWA tokenisation workstream under Notice No. 42 and runs the offshore security token filing regime. 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. 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. - **NDRC**, National Development and Reform Commission: Enforces the ban on crypto mining and oversees external debt issued in tokenised form. 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. 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. - **NFRA**, National Financial Regulatory Administration: Supervises banks and insurers, which may not provide accounts, settlement, collateral or insurance for crypto business. 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. 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. - **CAC**, Cyberspace Administration of China: Registers blockchain information services and closes websites and apps that promote crypto or RWA tokens. China's internet regulator. It controls online content, enforces cybersecurity and data rules and requires online information services to file or be licensed. 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. ### Licences #### Filing for offshore issuance of asset-backed security tokens - Regulator: CSRC - Legal basis: CSRC Announcement [2026] No. 1; Notice No. 42, para. 14 - Covers: Onshore entities issuing security tokens offshore that are backed by cash flows from mainland assets. - Requirements: File with the CSRC before issuance, with a filing report and the full offshore offering documents; Same business, same risk, same rules: securitisation, equity and debt rules still apply; Tokens in external-debt form also fall under NDRC and SAFE supervision; Offshore subsidiaries of mainland financial firms must apply parent-level KYC, suitability and AML controls - Page: https://policy.4pillars.io/china/licences#lic-1 #### Approval to issue a yuan-pegged stablecoin offshore - Regulator: PBoC - Legal basis: Notice No. 42 (2026), para. 1 - Covers: Any issuance of a stablecoin pegged to the yuan outside the mainland, by mainland or foreign entities. No approvals have been announced. - Requirements: Prior consent of the relevant authorities is mandatory; Mainland entities and offshore entities they control may not issue any virtual currency abroad without consent; No published criteria or application process - Page: https://policy.4pillars.io/china/licences#lic-2 #### Blockchain information service filing - Regulator: CAC - Legal basis: Provisions on the Administration of Blockchain Information Services (2019) - Covers: Providing blockchain-based information services to the public. Crypto trading and RWA services remain banned regardless of filing. - Requirements: File with the CAC within 10 working days of starting service; Real-name verification of users; Security assessment for new products and features; Content controls and record keeping for inspection - Page: https://policy.4pillars.io/china/licences#lic-3 ### Timeline - 2013-12-05: Five regulators bar banks from Bitcoin business. The notice defined Bitcoin as a virtual commodity that cannot circulate as money. - 2017-09-04: Seven regulators ban ICOs. Token fundraising was declared illegal and onshore platforms had to stop yuan-to-crypto trading. - 2021-05-21: State Council committee orders a crackdown on Bitcoin mining and trading - 2021-07-16: 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. - 2021-09-24: Ten agencies declare all virtual currency business illegal. Notice No. 237 covered offshore exchanges serving residents; the NDRC ordered mining shut the same day. - 2025-09: Brokerages reportedly told to pause Hong Kong RWA projects. Reported guidance from the CSRC to mainland securities firms; no public document was issued. - 2025-09-24: e-CNY International Operations Centre opens in Shanghai. It runs cross-border payment, blockchain service and digital asset platforms for the e-CNY. - 2025-11-28: PBoC-led meeting declares stablecoins a form of virtual currency - 2026-01-01: 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. - 2026-02-06: 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. ### Primary sources - [Notice on Further Preventing and Handling Risks Related to Virtual Currencies and Other Matters (Yinfa [2026] No. 42)](https://www.pbc.gov.cn/tiaofasi/144941/3581332/2026020619591971323/index.html). People's Bank of China (PBoC) with NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE, 2026-02-06, in force. The governing ban: all virtual currency business is illegal, onshore RWA tokenisation is prohibited outside approved infrastructure, and yuan-pegged stablecoins may not be issued offshore without approval. Effective on issue; repeals Notice No. 237. - [Q&A by PBoC and CSRC officials on the Notice on Further Preventing and Handling Risks Related to Virtual Currencies](https://www.csrc.gov.cn/csrc/c100028/c7614320/content.shtml). China Securities Regulatory Commission (CSRC) and PBoC, 2026-02-06, guidance. Explains why the 2021 notice was revised, why yuan stablecoins touch monetary sovereignty, and how offshore RWA work by mainland entities will be supervised. - [Regulatory Guidelines on the Offshore Issuance of Asset-Backed Security Tokens Based on Domestic Assets (CSRC Announcement [2026] No. 1)](https://www.csrc.gov.cn/csrc/c101954/c7614288/content.shtml). China Securities Regulatory Commission (CSRC), 2026-02-06, in force. Creates a CSRC filing requirement before onshore entities issue asset-backed security tokens offshore using cash flows from mainland assets. The only sanctioned tokenisation route. - [e-CNY undergoes major adjustment: new-generation framework from 1 January 2026](https://www.gov.cn/lianbo/202512/content_7053034.htm). Xinhua on the State Council portal (gov.cn), reporting the PBoC, 2025-12-29, guidance. Reports the PBoC action plan that turns wallet e-CNY into interest-bearing bank deposit money from 1 January 2026, and gives end-November 2025 figures of 16.7 trillion yuan in transactions and 230 million personal wallets. - [A Joint Meeting convened to Curb Speculations in Virtual Currency Trading](https://www.pbc.gov.cn/en/3688110/3688172/5552468/2025121116132332435/index.html). People's Bank of China (PBoC), 2025-11-28, guidance. States that stablecoins are a form of virtual currency that cannot meet KYC and AML requirements, foreshadowing the stablecoin clauses of Notice No. 42. - [e-CNY International Operations Centre officially begins operation](https://www.pbc.gov.cn/goutongjiaoliu/113456/113469/5853373/index.html). People's Bank of China (PBoC), 2025-09-24, guidance. Launches the Shanghai centre's cross-border e-CNY payment, blockchain service and digital asset platforms, run by the PBoC Digital Currency Institute. - [Action Plan for Promoting High-Quality Development of Digital Finance](https://www.pbc.gov.cn/en/3688253/3689009/4180845/2025112115005191153/index.html). PBoC, NDRC, MIIT, NFRA, CSRC, NDA and SAFE, 2024-11-27, guidance. The state's digital finance agenda to 2027, which commits to actively and prudently promoting the e-CNY rather than private digital money. Dated 21 November 2024 and published on 27 November 2024. - [Notice on Rectifying Virtual Currency Mining Activities (Fagai Yunxing [2021] No. 1283)](https://www.ndrc.gov.cn/xxgk/zcfb/tz/202109/t20210924_1297474.html). National Development and Reform Commission (NDRC) and other departments, 2021-09-24, in force. Bans new mining projects and orders existing ones phased out; Notice No. 42 reaffirms it and bars sales of mining machines onshore. - [Notice on Further Preventing and Resolving the Risks of Virtual Currency Trading and Speculation (Yinfa [2021] No. 237)](https://www.pbc.gov.cn/en/3688253/3689012/2025080817521950275/index.html). People's Bank of China (PBoC) and nine other authorities, 2021-09-15, superseded. Declared all virtual currency business illegal, including services by offshore exchanges to mainland residents. Published 24 September 2021; repealed by Notice No. 42 in February 2026. - [Progress of Research and Development of E-CNY in China](https://www.pbc.gov.cn/en/3688110/3688172/4157443/4293696/2021072014364791207.pdf). Working Group on E-CNY Research and Development of the PBoC, 2021-07-16, guidance. The official English white paper on the e-CNY's goals, two-tier design, controllable anonymity and pilot results. - [The PBC had a regulatory talk with banks and payment institutions on speculative trading of virtual currencies](https://www.pbc.gov.cn/en/3688241/3688663/3688678/2025080817521886904/index.html). People's Bank of China (PBoC), 2021-06-21, guidance. Told major banks and Alipay to screen out and cut off payment channels for crypto trading, a ban now codified for all financial institutions in Notice No. 42. - [Liu He chairs the 51st meeting of the State Council Financial Stability and Development Committee](https://www.gov.cn/xinwen/2021-05/21/content_5610192.htm). State Council of the PRC, 2021-05-21, guidance. The top-level political signal to crack down on Bitcoin mining and trading, which set off the 2021 exodus of miners and exchanges. - [Provisions on the Administration of Blockchain Information Services](https://www.cac.gov.cn/2019-01/10/c_1123971164.htm). Cyberspace Administration of China (CAC), 2019-02-15, in force. Requires blockchain service providers to file with the CAC, verify users' real identities and keep records, the permitted lane for non-crypto blockchain businesses. - [Announcement on Preventing Financial Risks from Initial Coin Offerings](https://www.csrc.gov.cn/csrc/c100028/c1001463/content.shtml). PBoC, CAC, MIIT, SAIC, CBRC, CSRC and CIRC, 2017-09-04, in force. Declared ICOs illegal public fundraising, ordered all token sales to stop and barred platforms from exchanging yuan for tokens or providing pricing. Still in force: Notice No. 42 repealed only the 2021 notice.