Chinese officials have reportedly warned that tokenizing real-world assets and related services could constitute illegal fundraising.
- The authorities reiterated that cryptocurrencies do not have the same legal status as fiat currency.
- Regulators said speculative trading in cryptocurrencies and tokenized real-world assets has created new challenges for financial risk control.
- At the time of writing, Bitcoin traded higher by about 8% at $67,801, after declining in seven of the previous eight sessions.
China has reportedly intensified its crackdown on cryptocurrencies, prohibiting domestic companies from issuing digital tokens overseas without official approval.
According to a Bloomberg report on Friday, citing a statement from The People’s Bank of China and seven other regulators, China has banned the offshore issuance of yuan-linked stablecoins unless authorized, warning that such activities could threaten the country’s monetary sovereignty.
Oversight To Protect National Security
Regulators said speculative trading in cryptocurrencies and tokenized real-world assets has created new challenges for financial risk control.
“Speculation involving cryptocurrencies and real-world asset tokenization has occurred from time to time amid multiple factors, presenting new challenges for risk prevention and control, and necessitating stronger regulation to safeguard national security and social stability,” the regulators reportedly said in the notice.
The authorities reiterated that cryptocurrencies, including Bitcoin, Ether, and stablecoins, do not have the same legal status as fiat currency and that related business activities on the mainland are considered illegal financial operations.
Officials cautioned that tokenization of real-world assets, along with associated intermediary and technology services, could amount to illegal fundraising unless explicitly approved within designated financial infrastructure.
Bitcoin’s Selloff
The announcement comes amid an extended selloff in Bitcoin, with the cryptocurrency trading at levels last seen in October 2024. Over the past three weeks, an intensified selloff has erased nearly half of Bitcoin’s value after it climbed to a record above $126,000 in early October last year.
At the time of writing, Bitcoin was up about 8% to $67,801, after declining in seven of the previous eight sessions.
Ethereum is seeing a similar rebound, rising 8.5% to $1,978.8 after falling in eight of the past nine sessions to its lowest level since May 2025.
Read also: Why Did DOCS Stock Plunge 35% In Pre-Market Today?
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
