China Reaffirms Blanket Ban on Crypto

China has taken a decisive step to outrightly ban cryptocurrency and real-world asset (RWA) tokenization activities within its borders. The People’s Bank of China and seven other government ministries issued a joint notice declaring these activities illegal

The authorities said crypto and asset tokenization are now classified as unlawful financial operations. The move shows a strong and long-term policy stance to tighten financial control. It also aims to reduce risks and protect economic and social stability.

Virtual Currencies and Tokenization Declared Illegal in Financial Markets

The new notice clearly states that virtual currencies do not hold the same legal status as official currency. Assets such as Bitcoin (BTC), Ethereum (ETH), and stablecoins are not recognized as lawful means of payment and cannot be used in market transactions

As a result, all business activities connected to virtual currencies are now classified as illegal financial activity. This covers exchanging fiat money for crypto and trading between digital assets

It also includes market-making, intermediary services, token issuance, and crypto-linked financial products. Authorities have ordered that all such activities be strictly stopped and fully banned across the country.

China has also placed RWA tokenization under the same restrictions. Regulators define this practice as converting ownership rights or income rights from assets into digital tokens that can be issued or traded

According to the notice, these activities are prohibited unless they receive direct approval and operate on officially designated financial infrastructure. Notably, the ban applies not only to domestic firms but also to offshore entities

Foreign platforms and companies are barred from providing RWA services to users in mainland China. Likewise, Chinese firms are prohibited from bypassing domestic rules through foreign vehicles.

Financial Institutions and Online Platforms Face Strict Limits

Furthermore, banks, insurance companies, and payment providers are now forbidden from supporting any virtual-asset-related activity

They are not allowed to open accounts or move funds related to cryptocurrencies in the country. These institutions also cannot settle transactions, provide custody, or offer insurance for crypto or tokenized assets.

Internet platforms are also subject to strict enforcement. They may not host business operations, promote services, run advertisements, or purchase traffic related to crypto or RWA tokenization

These platforms are required to assist authorities in shutting down related websites, mobile applications, and online accounts.

China Enforces Immediate Crypto Ban

The ban notice took effect immediately and formally repeals the earlier 2021 guidance that first labeled many crypto activities as illegal

This move reinforces China’s long-standing opposition to crypto mining. Provincial governments have been instructed to fully identify and shut down any existing mining projects

The creation of new mining capacity is strictly prohibited. This ensures that crypto production, not just trading and financial services, is removed from the domestic economy.

The announcement arrives during a period of global market weakness for digital assets. Bitcoin is trading near $66, 000 after a sharp daily decline

Ethereum has fallen to around $1,890, while Solana has dropped to roughly $78. These price movements show that traders still see digital assets as high-risk investments.

The post China Reaffirms Blanket Ban on Crypto appeared first on TheCoinrise.com.