China is tightening its crypto crackdown in 2026 to protect financial stability and national security..Regulators see cryptocurrencies and stablecoins as threats to China’s control over its monetary system..Yuan-pegged stablecoins are targeted for undermining the authority of the digital yuan (e-CNY)..The PBOC wants to clear the path for wider adoption of its state-backed digital currency..Authorities aim to stop illegal capital flight using crypto to bypass strict capital controls..China estimates billions of dollars move overseas each year through crypto-based channels..Real-world asset tokenization is now restricted to prevent unregulated shadow markets..New rules ban domestic firms from issuing or promoting crypto through overseas entities..Internet platforms and banks must cut all support to crypto-related activities or face penalties..Read More Stories.Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp