China is drawing a firm line in the sand when it comes to digital money.

But what’s allowed—and what’s banned—might surprise you.

On Friday, Beijing doubled down on its crackdown.

It banned unauthorised offshore issuance of yuan-pegged stablecoins and tightened rules around virtual currencies.

The central bank said virtual currencies remain illegal and warned that any business tied to them is considered an “illegal financial activity.”

Even domestic companies and their overseas arms can’t issue crypto without approval.

“Virtual currencies do not have the same legal status as fiat currencies,” the People’s Bank of China said.

Yet, there’s a silver lining for certain digital assets.