Despite initial signs of a potential thaw, China’s cryptocurrency landscape has frozen over once again. The People’s Bank of China, alongside seven ministries, dropped a bombshell on February 6, 2026, with a new Notice that technically repeals the 2021 crypto ban.
Don’t get excited though – they’ve just replaced it with something worse.
China’s regulatory thaw was a mirage. The new crypto framework isn’t progress—it’s prohibition dressed in policy paperwork.
The new rules are brutally clear. RMB-pegged stablecoins? Banned. Real-world asset tokenization without approval? Nope. Cryptocurrency trading and exchanges? Still forbidden. So much for progress.
It’s almost comical. Just before the hammer dropped, PBOC Governor Pan Gongsheng was talking up the RMB challenging dollar dominance. Then boom – no privately issued RMB stablecoins allowed, domestically or overseas. Tech giants like Ant Group and JD.com have already shelved their stablecoin projects. Dreams crushed.
The timing couldn’t be more perfect – right in the middle of the latest crypto market crash on February 7. Talk about kicking an industry while it’s down.
China’s approach is simple: control everything. They’ve created narrow, state-approved channels for digital finance while suffocating anything decentralized. The new framework explicitly bans RWA activities conducted outside state-approved channels, reinforcing the government’s iron grip.
Want to tokenize assets? Only through designated state-owned data exchanges. Cross-border stuff using domestic assets? File with the CSRC and pray you’re not on their negative list.
Hong Kong remains the one sliver of hope, hosting experiments with HKD-pegged stablecoins. About 50 companies had planned stablecoin licenses there last year. Now? Who knows.
Experts aren’t surprised. Angela Ang from TRM Labs notes China’s stance on stablecoins has grown “increasingly cold.”
Patrick Tan from ChainArgos says it at least “clarifies red lines” for would-be RMB stablecoin issuers. Small comfort.
The recovery in crypto markets? Just an illusion, apparently. This regulatory winter is only getting deeper, with China making sure decentralized finance stays firmly in the freezer.
Global markets like Bitcoin and Ethereum? They’ll survive. Everyone else? Better bundle up. Investor confidence remains shaky, as evidenced by the massive withdrawal of $3.3 billion from U.S. spot Ethereum ETFs since October’s market crash.
