China maintains the broadest crypto prohibition of any major economy. The September 2021 notice issued by the People's Bank of China with nine other agencies declared all crypto-related business activity, including exchange, order matching, token issuance, and derivatives, to be illegal financial activity, and extended the ban to overseas exchanges serving mainland residents. In February 2026 eight agencies led by the PBOC replaced that notice with a broader one, Yinfa [2026] No. 42, which keeps the ban and extends it: no domestic or foreign entity may issue a yuan-pegged stablecoin offshore without approval, offshore tokenization of onshore assets requires approval or filing, and internet platforms may not host or promote crypto or tokenization services. A parallel NDRC action banned mining, which had hosted a majority of global hash rate. Enforcement runs through payment blocking, criminal prosecution for illegal fundraising and illegal business operations, and periodic sweeps of over-the-counter desks.
Chinese civil courts have repeatedly recognized that crypto held by individuals has property attributes, so personal holding is not itself criminal, and disputes over stolen or misappropriated coins are justiciable. And the state runs the world's largest central bank digital currency program, the e-CNY, alongside continued interest in blockchain infrastructure. The 2026 notice answered recurring reports that mainland institutions might issue offshore yuan stablecoins through Hong Kong: any such issuance now needs explicit approval.
The instruments
Notice on Further Preventing and Dealing with Risks of Virtual Currency Trading and Speculation
Declared virtual-currency business activity illegal financial activity, barred financial institutions and payment companies from servicing it, extended jurisdiction to offshore exchanges serving mainland users, and directed criminal referral of violators. Repealed and replaced on February 6, 2026 by Yinfa [2026] No. 42.
Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies
Replaces the 2021 notice and restates that virtual-currency business activity is illegal financial activity, then extends the perimeter: offshore issuance of yuan-pegged stablecoins by any domestic or foreign entity requires approval, offshore tokenization of onshore assets requires approval or filing under CSRC guidelines issued the same day, internet platforms may not provide venues, promotion, or paid traffic for crypto or tokenization businesses, and existing mining must cease.
Mining prohibition and industrial policy exclusion
Bans new virtual-currency mining projects, orders existing ones wound down, and classifies mining as an eliminated industry, with electricity-pricing penalties for holdouts.