China Extends Crypto Ban to Stablecoins
China has extended its crypto ban to cover stablecoins and tokenized real-world assets, further restricting digital asset activity in the region. Meanwhile, the EU is finalizing its 20th sanctions package that would ban all crypto transactions with Russia, tightening regulatory controls on cross-border digital asset flows. Coinbase appears close to a major U.S. crypto policy shift that could impact how exchanges operate domestically.
- China's regulatory pressure on crypto is not new, with significant crackdowns in 2017 that shut down local exchanges and a comprehensive ban on all cryptocurrency transactions and mining in 2021. - The latest directive was a joint effort by eight top Chinese authorities, including the People's Bank of China, and specifically forbids the issuance of yuan-pegged stablecoins overseas without official approval. - This tightening in mainland China contrasts sharply with Hong Kong, which is actively creating a regulatory framework to license stablecoin issuers. - The EU's proposed blanket ban on crypto transactions with Russia is a strategic shift from its previous method of sanctioning individual companies, a practice that led to sanctioned entities being quickly replaced by new platforms. - The EU sanctions specifically target Russia's development of a digital ruble and the A7A5 ruble-pegged stablecoin, which saw its user base grow even after being targeted in a previous sanctions package. - The EU's 20th sanctions package requires unanimous approval from all 27 member states and also aims to bar third-country banks in nations like Kyrgyzstan from transacting with EU entities if they facilitate Russian crypto services. - In the U.S., the Commodity Futures Trading Commission (CFTC) has appointed Coinbase CEO Brian Armstrong to a new 35-member Innovation Advisory Committee to help shape policy, signaling a move toward more collaborative rulemaking. - The policy situation in the U.S. remains complex; in January 2026, Coinbase's CEO came out against a major Senate crypto bill, arguing that its provisions would harm the industry by, among other things, effectively "killing rewards on stablecoins."
