China Crypto Ban and RWA Tokenization Rules Impacting Global Liquidity and Stablecoin Markets
Recent regulatory updates from China, including the reaffirmation of a crypto ban and new rules for real-world asset tokenization, have influenced global liquidity indicators and stablecoin markets over the past 72 hours. These developments are shaping regional capital flows and policy responses across Asia and the US.
The People’s Bank of China (PBOC) and seven agencies issued a notice on February 6, 2026, explicitly banning onshore RWA tokenization and yuan-pegged stablecoins without approval, following the June 2025 Tether fraud case and a surge in crypto speculation during H2 2025. Meanwhile, Hong Kong announced stablecoin licenses to be issued in March, contrasting mainland restrictions and positioning HK as a regional crypto hub.
The regulatory framework introduced by the China Securities Regulatory Commission (CSRC) now centralizes oversight of tokenized assets, aiming to prevent fraud and align cross-border flows with approved entities. US-based crypto platforms and offshore projects may experience shifts as Chinese capital seeks compliant alternatives amid these new restrictions.
Market reactions in the US Business and Finance sector show heightened search activity related to China’s crypto policies, indicating increased awareness and potential capital reallocation. The timing of these signals correlates with recent policy announcements and ongoing enforcement actions over the last three days.
Collectively, these signals demonstrate a tightening of China’s crypto environment and a regional divergence in stablecoin regulation, which could influence liquidity conditions and the flow of digital assets across borders. The focus on policy and regulation underscores the importance of regulatory clarity in shaping market stability and infrastructure scaling.
The dataset does not specify liquidity breakdowns or the exact impact on global M2 indicators, nor does it include forward guidance beyond these regulatory announcements, leaving some uncertainties regarding the full scope of liquidity effects.
OSINT does not include detailed liquidity metrics or the precise capital flow figures resulting from these policy changes.
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