china

China’s central bank has extended its gold accumulation streak to the 15th consecutive month, sending a strong signal to global financial markets. This steady buying trend is not just a routine reserve adjustment—it reflects a deeper strategic shift in how major economies are preparing for an uncertain future.
At the center of this move is People’s Bank of China, which has been consistently increasing gold reserves as part of a broader diversification strategy. With rising geopolitical risks, trade fragmentation, and long-term inflation concerns, gold is once again proving its value as a neutral and resilient store of wealth.
One key reason behind China’s gold buying is reduced dependence on the US dollar. As global trade becomes more regionalized and sanctions risks grow, holding physical gold offers protection against currency volatility and financial system shocks. Unlike fiat currencies, gold carries no counterparty risk—making it especially attractive during periods of macroeconomic stress.
This trend also highlights a wider movement among central banks worldwide. Over the past few years, gold purchases by central banks have remained historically high, reinforcing the metal’s role as a strategic reserve asset. China’s continued accumulation strengthens this narrative and adds long-term support to gold prices.
For investors, this development matters. Central bank demand often acts as a price floor for gold, especially during market corrections. When large institutions buy consistently, it reduces downside risk and increases confidence in gold’s long-term outlook.
There’s also an indirect impact on crypto markets. Bitcoin is often compared to “digital gold,” and rising interest in hard assets—whether physical or digital—signals declining trust in purely inflationary systems. While gold and crypto serve different roles, both benefit from the same macro themes: monetary expansion, debt growth, and uncertainty.
China’s 15-month gold-buying streak is more than a headline. It’s a reminder that in a rapidly changing financial world, hard assets are back at the center of long-term strategy.
#GOLD #china #GlobalMarket

China has once again reaffirmed its strict ban on cryptocurrencies, while significantly expanding regulatory scrutiny to include real-world asset (RWA) tokenization and stablecoins issued offshore but linked to the Chinese yuan.
In a joint notice released on Friday, the People’s Bank of China (PBoC), together with key regulatory bodies including the National Development and Reform Commission, the Ministry of Public Security, securities regulators, and the foreign exchange authority, reiterated that all crypto-related activities remain illegal in mainland China.
The authorities stated that speculative activities involving cryptocurrencies and RWA tokenization have disrupted financial order and increased systemic risks, reinforcing Beijing’s long-standing concerns over financial stability and capital control.
Cryptocurrencies Have No Legal Status in China
The notice emphasized China’s consistent policy stance: all cryptocurrencies, including Bitcoin and stablecoins such as USDT, do not have legal status equivalent to fiat currency and are not permitted to circulate as money within the country.
A wide range of crypto-related business activities continue to be classified as illegal financial operations, including:
Converting cryptocurrencies into fiat currency
Token trading and exchange services
Acting as a central counterparty or clearing intermediary
Providing pricing information, valuation services, or technical support for crypto transactions
These restrictions apply regardless of whether the activities are conducted directly or indirectly.
Beijing Takes a Harder Line on Stablecoins and RWA
One of the most notable developments in the latest announcement is Beijing’s toughened stance on yuan-linked stablecoins. Regulators made it clear that no organization or individual—domestic or foreign—is permitted to issue offshore stablecoins pegged to the Chinese yuan without explicit regulatory approval.
This clarification signals growing concern among Chinese authorities over the potential impact of stablecoins on monetary sovereignty, cross-border capital flows, and financial supervision.
Language surrounding real-world asset (RWA) tokenization has also been significantly tightened. RWA tokenization is defined as the use of cryptographic techniques and distributed ledger technology to convert ownership rights or income rights into tokenized certificates that can be issued and traded.
Under the new framework:
RWA tokenization activities are prohibited within China, unless conducted on designated financial infrastructure with prior regulatory approval
Related intermediary services and IT support are also banned
Foreign entities are prohibited from illegally providing RWA tokenization services to domestic Chinese counterparts
Expanded Reach Beyond China’s Borders
The new rules further narrow regulatory loopholes by extending oversight beyond mainland China. Domestic entities—or offshore entities controlled by them—are not allowed to issue cryptocurrencies overseas without proper approval.
In addition, the principle of “same activity, same risk, same regulation” now applies to offshore RWA tokenization projects that are based on domestic assets or economic interests. Such projects must obtain regulatory approval or complete required filings, even if the token issuance occurs outside China.
Not a New Policy, But a Broader Enforcement Scope
While the stronger language on offshore structures and RWA tokenization represents a tightening of enforcement, it is not a new policy direction. In the past, Chinese regulators have:
Required brokerage firms to halt tokenization initiatives in Hong Kong
Repeatedly warned about the risks associated with stablecoins
Continued to promote state-backed digital currencies, particularly the digital yuan (e-CNY)
Together, these measures underline Beijing’s preference for tightly controlled digital finance models over decentralized or privately issued crypto assets.
Final Thoughts
China’s latest regulatory clarification reinforces its zero-tolerance approach toward cryptocurrencies while signaling increased vigilance over emerging areas such as tokenized assets and stablecoins. The move reflects broader concerns over financial stability, regulatory arbitrage, and the preservation of monetary control.
📌 Disclaimer:
This article is for informational purposes only and represents a personal blog-style market commentary. It does not constitute financial or investment advice. Readers should conduct their own independent research before making any financial decisions. The author assumes no responsibility for outcomes resulting from actions taken based on this content.
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#china #CryptoRegulationBattle #Stablecoins