New Warning from the Central Bank of China on Cryptocurrency Bans

The People's Bank of China (PBOC) once again reiterated its strict stance towards cryptocurrencies. In the information note it published, the bank stated that cryptocurrencies do not have the same legal status as fiat currencies and cannot be circulated as money in the country.

PBOC emphasized that commercial activities related to cryptocurrencies in mainland China are considered illegal financial activities and such activities are prohibited. This approach also coincides with the regulation published by eight Chinese institutions in February 2026, which reaffirmed that Bitcoin, Ether and stablecoins do not qualify as legal tender.

Providing services from abroad is also prohibited.

The central bank stated that institutions and individuals abroad cannot provide any form of illegal cryptocurrency services to individuals and organizations in mainland China.

According to current regulations, organizations in China and foreign companies under their control are not allowed to export cryptocurrencies in other countries unless the necessary permissions are obtained from the competent authorities.

In China, activities such as conversion between fiat money and crypto money, exchange transactions between crypto money, intermediation and pricing services for crypto asset transactions, and token issuance are also considered illegal financial activities.

Special restriction on stable coins indexed to Yuan

One of the issues that PBOC drew attention to was stable coins.

According to China's current regulation, it is prohibited for any institution or person outside mainland China to issue yuan-denominated stablecoins without obtaining legal approval from the relevant authorities. Authorities state that stable coins linked to fiat currencies actually undertake some of the money functions during use, and this is important for monetary sovereignty.

Cryptocurrency warning to investors

The People's Bank of China also called on citizens to be careful about cryptocurrency investment products and trading platforms.

The bank warned not to participate in activities such as cryptocurrency issuance, investment and mining, to stay away from chat groups and communities that promote crypto money, and not to download applications related to these activities.

China's current prohibitive approach towards cryptocurrencies is not new. With the regulation that came into force in February, bans on cryptocurrency activities in the country were reconfirmed, and new limits were set on foreign cryptocurrency issuances and yuan-linked stable coins.