China, known for its strict bans on Bitcoin and cryptocurrencies, has introduced yet another ban.
According to Bloomberg, China has banned the export of yuan-backed stablecoins that have not received government approval.
Accordingly, China has tightened restrictions on cryptocurrencies and tokenized real-world assets. It has banned domestic entities from issuing digital tokens abroad without approval and has blocked the export of yuan-backed stablecoins overseas.
The People’s Bank of China (PBOC) and seven Chinese institutions announced in a joint statement on Friday that mainland Chinese companies and their overseas subsidiaries cannot issue cryptocurrency abroad unless authorized by the relevant authorities.
Regulators also stated that no institution or individual could issue yuan-backed stablecoins abroad without approval, citing risks to monetary sovereignty.
This decision has been interpreted as part of a strategy pursued by the People’s Bank of China due to concerns about money laundering and currency fraud.
The People’s Bank of China reiterated its strict ban on cryptocurrencies in a published statement. It repeated that cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) do not have the same legal status as legal tender and cannot be circulated as currency in the market.
China has also ordered internet companies to stop offering services related to cryptocurrencies.
*This is not investment advice.