Lawyer: Three Key Points Worth Watching in China’s New Cryptocurrency Policies

Author | @JianzhiJin

Original link: https://x.com/JianzhiJin/status/2020352607135686944

On February 6, 2026, the People’s Bank of China (PBOC), the National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology (MIIT), and six other ministries jointly issued the Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies and Similar Activities (Yin Fa [2026] №42, the “Notice”). On the same day, the China Securities Regulatory Commission (CSRC) released the accompanying Regulatory Guidelines on the Offshore Issuance of Asset-Backed Securities Tokens Using Onshore Assets (the “Guidelines”). Subsequently, officials from the PBOC and the CSRC answered media questions regarding the Notice, further clarifying policy direction and enforcement requirements.

Historically, China has maintained a high-pressure, near-total prohibition on blockchain and cryptocurrency activities with financial attributes. Against this backdrop, any new policy that introduces incremental clarification or structure is generally viewed as positive — simply because the regulatory stance is unlikely to become more restrictive than it already is.

So what is new in the “one Notice, one Guideline, and one press Q&A” released on February 6?

1. RMB-denominated stablecoins are prohibited.

The issuance of Renminbi-based stablecoins is explicitly disallowed. Previous attempts to explore offshore RMB stablecoins are now effectively over. This outcome is consistent with prior expectations: as a highly controlled currency, the RMB is not considered suitable for experimentation with non-sovereign, uncontrolled stablecoin structures, given that policymakers view the uncertainties as far outweighing the potential benefits.

2. Real-World Asset (RWA) tokenization may not be conducted onshore.

RWA tokenization — commonly referred to in the market as “RWA” — has never been permitted within mainland China. In the past, market participants sought to operate in regulatory gray areas, often via Hong Kong. The current policy stance clarifies that RWA activities may proceed, but only offshore. The CSRC’s 2026 №1 regulatory guidance provides relatively detailed instructions on how this is to be done. By comparison, the CSRC’s 2025 №1 announcement was Legal Opinions on the Application of Securities and Futures Laws №19 — Regarding Articles 13 and 14 of the Measures for the Administration of the Takeover of Listed Companies. This comparison indicates that crypto-related RWA activities are now effectively placed on a regulatory footing comparable to that of listed companies.

3. Offshore RWA issuance must be conducted rigorously and with high standards.

No country is fundamentally opposed to capital formation. However, as a responsible major economy, China requires that even RWA products issued offshore meet strict quality and compliance standards. Onshore assets with compliance issues cannot be used, and issuers with regulatory deficiencies are not permitted. Under the principle of responsibility to global investors, only high-quality onshore assets may be tokenized offshore, with regulatory endorsement from the CSRC. Issuers are required to file with the CSRC, submitting filing reports, complete sets of offshore issuance documentation, and detailed disclosures covering the onshore filing entity, underlying assets, and token issuance structure.

Previously, the CSRC’s remit focused on the issuance, listing, trading, custody, and settlement of equities, bonds, funds, futures, and derivatives, as well as the conduct of related market institutions. Its extension into RWA regulation signals that this is no longer a field open to casual or purely experimental participation. The first compliant offshore RWA issuance involving onshore assets is almost certainly reserved for major institutional players. That said, if RWA tokenization can achieve lower compliance costs and greater capital-raising efficiency than traditional asset securitization, the crypto industry may yet make a meaningful contribution to China’s broader economic development.

Overall, viewed from any angle, these developments are a positive step.