China Bans Crypto Issuance by Domestic Firms Overseas

China has officially banned its domestic companies from issuing cryptocurrencies abroad without government approval, escalating its long-running crackdown on digital assets.

Key Takeaways

• The People’s Bank of China (PBoC) declared all crypto-related activities illegal, including token issuance and trading of real-world assets (RWA).
• Domestic firms and their overseas entities are barred from issuing stablecoins or any virtual currencies without prior authorization.
• The new rules prohibit both onshore and offshore RWA tokenization unless explicitly approved by designated financial infrastructure.
• Enforcement extends across the full service stack, including internet platforms, payment processors, and miners.

What Happened?

In a coordinated move with seven other ministries, the People’s Bank of China issued a sweeping notice that tightens control over all aspects of cryptocurrency activity. The statement explicitly bans Chinese companies from engaging in crypto issuance overseas, even through offshore subsidiaries, unless they obtain official approval. The directive marks a significant expansion of previous crypto regulations and includes real-world asset tokenization in its scope.

Full Ban Now Covers Overseas and RWA Activity

The new policy, jointly issued by the PBoC and other top financial and internet regulators, makes it clear that Bitcoin, Ether, Tether, and similar virtual currencies are not recognized as legal tender. The notice declares that any business activity involving these tokens is now considered illegal.

This includes:

• Crypto-to-fiat and crypto-to-crypto trading.
• Token issuance or sales (such as ICOs).
• Market-making services.
• Custody and insurance of virtual assets.
• RWA tokenization for ownership or income rights.

Real-world asset tokenization, a growing niche in blockchain finance, is also swept into the ban. Chinese authorities now treat the practice as a high-risk financial activity that cannot be conducted inside China or by Chinese entities abroad without special permission. Offshore platforms providing RWA tokenization to Chinese users are also outlawed.

Enforcement and Internet Platform Crackdown

The notice builds on the 2021 Yinfa No. 237 circular, which originally banned key crypto operations in China. This updated directive expands the framework by targeting every layer of the crypto ecosystem:

• Financial institutions and fintech firms must not open accounts, process payments, or offer services linked to digital assets.
• Internet platforms are forbidden from hosting or promoting crypto projects, including websites, apps, and online ads.
• Crypto mining remains prohibited, with provinces instructed to shut down all active mining operations and block new developments.

Same Rules Apply to Overseas Subsidiaries

In one of the most far-reaching updates, the PBoC emphasized the principle of “same business, same risk, same rules”. This means any company headquartered in China, or controlled by Chinese interests, must comply with domestic laws even when operating abroad. Without registration or approval, issuance of any cryptocurrency or RWA tokenization by Chinese-controlled firms is banned.

National Coordination and Public Awareness

The Chinese government plans to back these new measures with:

• Cross-department enforcement between central and provincial agencies.
• Public education campaigns to warn citizens about crypto risks.
• Efforts to maintain financial stability and prevent illegal activities like fraud, money laundering, and cross-border capital evasion.

CoinLaw’s Takeaway

In my experience watching China’s financial policy evolve, this is not just another crypto warning. It’s a full system lockout. China is not only shutting down domestic crypto activity but now reaching beyond its borders to regulate what its companies can do overseas. The inclusion of RWA tokenization in the crackdown is especially significant, because it shows that Beijing is not just afraid of volatile currencies but also blockchain-based securitization. I found it striking how coordinated this effort is, spanning financial, internet, and law enforcement agencies. China is clearly determined to leave no room for digital assets in its economic system.

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