China has intensified its crackdown on cryptocurrency activities, issuing a new directive that bans unauthorized overseas token issuance and yuan-linked stablecoins. The People’s Bank of China, along with seven other regulatory bodies, released a joint notice on February 5, 2026, reinforcing the country's existing ban on cryptocurrency-related activities and closing perceived loopholes. The directive extends the 2021 prohibition to include offshore digital token issuance by domestic firms and any yuan-pegged stablecoins issued without official approval. The notice emphasizes that all virtual currency-related business activities, including trading, market-making, derivatives, and token issuance, remain illegal under Chinese law. It also targets foreign platforms serving mainland users, indicating a coordinated enforcement effort. The crackdown aims to prevent money laundering, illegal fundraising, and speculative trading, while protecting financial stability and national security. The move underscores China's preference for its state-controlled digital currency, the e-CNY, as the sole digital alternative to cash.