China tightens scrutiny of stablecoins amid cross-border use

Wang Xin, director general of the People’s Bank of China Research Bureau, urged closer monitoring of stablecoins and stronger international coordination on regulation as privately issued tokens take a larger role in cross-border payments.

Wang noted regulators should track whether stablecoins are used more often in payments that cross national borders and consider how rules and cooperation should be structured. He warned that rising uncertainty and the potential use of payments as a coercive tool could disrupt routine international transfers.

On Feb. 6 the PBOC and several government agencies issued rules banning the unauthorized issuance of renminbi-pegged stablecoins and the tokenization of real-world assets. The measures applied to domestic and foreign entities, covered onshore and offshore versions of the yuan, and required issuers to obtain government approval.

Market data show stablecoins are an increasing share of crypto activity. In the first quarter of 2026 overall stablecoin supply rose by about $8 billion to roughly $315 billion. Stablecoin transaction volume in that quarter exceeded $28 trillion and represented about 75% of total crypto trading volume; one analyst group estimated automated trading bots accounted for roughly three-quarters of that activity. The stablecoin market cap briefly reached $322 billion before settling near $315 billion.

Wang also called for closer observation of central bank digital currencies and for improved policy cooperation on their cross-border use. He urged regulators to consider aligning rules across jurisdictions to reduce regulatory gaps.

The remarks did not announce immediate policy changes or endorse privately issued stablecoins.