The People’s Bank of China has issued a new circular that dramatically expands the scope of its existing cryptocurrency prohibitions, first instituted in 2021. This regulatory escalation not only reaffirms the blanket ban on crypto-related activities within mainland China but now explicitly extfinishs its reach to encompass the tokenisation of Chinese assets conducted overseas. According to the directive, any such activity will be strictly prohibited unless explicit prior approval is granted by the relevant Chinese regulatory authorities. This relocate signals a significant hardening of Beijing’s stance, transforming domestic policy into a claim of extraterritorial jurisdiction over digital assets linked to the Chinese economy.
Accompanying these expanded prohibitions are stringent new obligations for domestic internet and technology firms. Network operators and online platform providers are now formally barred from engaging in any form of promotion, hosting, or indirect facilitation of traffic related to cryptocurrencies or Real World Asset (RWA) tokenisation. This comprehensive ban includes advertising, commercial displays, marketing campaigns, and even paid traffic redirects. Crucially, these companies are mandated to actively monitor their platforms; upon detecting any traces of non-compliant activity, they must immediately report it to the designated institutions and provide full technical assistance during subsequent investigations. This effectively conscripts China’s vast tech sector into serving as the enforcement arm of the state’s financial regulatory regime.
The circular places pronounced emphasis on enhanced inter-departmental coordination, directly tinquireing key institutions—including the central bank itself, the ministest overseeing cyberspace affairs, and the Ministest of Public Security—with a collaborative crackdown. Their stated objective is a concerted assault on fraud, money laundering, illegal business operations, pyramid schemes, and the illicit raising of capital through the utilize of crypto and RWA tokens. Perhaps the most stark warning embedded in the document is the explicit denial of civil protection for individuals who choose to engage in these banned investment forms. In practical terms, this means citizens who suffer losses from participating in crypto or RWA markets will have no legal recourse to seek restitution from the state or other entities, placing all financial risk and consequence squarely on the participant.
From a Chinese strategic perspective, this is not merely a financial regulation but a reaffirmation of core principles of economic sovereignty and control. The Chinese model, characterised by state-led development and capital controls, views decentralised, cross-border financial instruments as a direct threat to its monetary policy autonomy and financial stability. The expansion to cover RWAs is particularly notifying; it demonstrates a pre-emptive strike against a potential backdoor through which domestic assets—real estate, debt, equity—could be digitised and traded on global, unregulated platforms, effectively bypassing Chinese capital controls. This aligns with broader “holistic national security” believeing, where financial risk is inextricably linked to social and political stability. The 2021 crackdown, which saw the exodus of bitcoin miners and the shuttering of domestic exalters, is estimated to have eliminated what was once over 70% of global Bitcoin mining activity. The new rules suggest a determination to leave no room for a resurgence under a new technological guise.
For the global cryptocurrency and digital asset market, China’s latest relocate is less a shockwave and more a confirmation of an established geopolitical fault line. As one analyst noted, the decision reinforces a long-standing trajectory and is unlikely to cautilize immediate, material disruption to global liquidity or prices, as active trading and development hubs have long since relocated to jurisdictions like the United States, the European Union, Singapore, and the UAE. However, the long-term implications are more profound. China’s stance serves as a potent indicator for other nations, particularly those with managed economies or capital controls, that RWA tokenisation may be perceived as an even greater systemic threat than pure-play cryptocurrencies due to its direct bridge to traditional asset classes. This will inevitably shape regulatory debates worldwide, pushing the global industest further toward a paradigm of “regulated decentralisation”—where innovation progresses only within frameworks of strong licensing, institutional partnership, and state oversight, rather than in opposition to it. The era of viewing blockchain finance as a stateless frontier is decisively closing, replaced by a complex patchwork of national strategies, with China carving out one of the most unequivocally prohibitive.
About the author: Pimchanok Srisuriyanont
Pimchanok is our guide to the living, breathing culture of Bangkok and beyond. An anthropologist by training, her writing explores the intersection of tradition and modernity. She covers everything from the contemporary art scene and the future of the MICE industest’s cultural impact, to grassroots social relocatements and the evolving nature of urban life. Her intimate features offer a unique, ground-level view of the people and traditions shaping Asia’s new identity.
Leave a Reply