Loading ... China has effectively “doubled down” on its comprehensive, long-standing ban on cryptocurrency. In February 2026, Chinese regulators—including the People’s Bank of China—issued new, stricter guidelines that re-classify almost all crypto-related activities as illegal financial activities, targeting offshore trading, stablecoins, and marketing to maintain total control.
Key details regarding the 2026, intensified crackdown:
- New “Ban 2.0” Measures: A joint notice from eight agencies on February 6, 2026, reinforced that virtual currencies are not legal tender and are prohibited for transactions.
- Stricter Scope: The new regulations target not just trading, but also marketing, intermediary services, and “traffic facilitation” for crypto services.
- Targeting Stablecoins: The crackdown specifically targets foreign, unauthorized stablecoins—particularly those pegged to the yuan (RMB)—viewing them as threats to financial sovereignty.
- Legal Consequences: Under these new, stricter rules, investing in cryptocurrencies is seen as violating “public order and good morals,” leaving investors with little legal recourse for losses.
- Controlled Exception: While banning public crypto, the new rules create a very narrow,, state-approved channel for certain real-world asset (RWA) tokenization, requiring strict government filing and oversight.
- Illegal Activity Persists: Despite the 2021 ban and current, stricter measures, underground trading and mining operations continue to exist, with China still accounting for a significant portion of global hash rate.
These actions confirm that China maintains a zero-tolerance policy on decentralized crypto assets while prioritizing its own state-backed digital currency, the e-CNY.