China’s central bank added 40,000 troy ounces of gold in January 2026, lifting its total holdings to 74.19 million ounces, worth about $369.58 billion. The purchase marked the 15th straight month of reserve expansion. The buying continued even as global markets stayed volatile.
The move came after a sharp correction in gold. According to the source material, prices had climbed about 30% earlier in the year before dropping nearly 10% in a single day as speculative flows reversed. Gold later recovered part of the loss and was quoted around $4,968, though swings in price were still notable. China’s steady accumulation points to a clear preference for gold as a long-term reserve asset.
Central bank demand keeps gold well supported
China is acting within a larger global pattern. World Gold Council data cited in the source shows central banks bought more than 860 tonnes of gold in 2025. That was lower than the roughly 1,000-tonne pace seen in earlier years, but still historically strong. Total annual gold demand also moved above 5,000 tonnes in 2025.
Analysts in the source said sustained official buying helps support a floor under bullion prices and reinforces gold’s role in reserve management. China’s purchases may also encourage other emerging economies to reduce exposure to the US dollar and hold a larger share of reserves in gold.
February notice keeps China’s crypto stance intact
While gold purchases continued, Beijing’s position on crypto remained restrictive. The source says that on February 6, 2026, China issued a notice that denied legal status to cryptocurrencies, treated crypto-related business activities as financial crimes, and barred foreign cryptocurrency platforms from operating inside the country.
Authorities put special focus on two areas: offshore yuan-pegged stablecoins and offshore tokenization of real-world assets tied to Chinese holdings. The risks cited were capital flight, money laundering, and threats to monetary sovereignty. That language shows the concern goes beyond trading activity alone and reaches into cross-border digital financial infrastructure.
A policy line that has stretched from 2013 to 2026
The latest notice follows a long sequence of restrictions. In 2013, banks and payment firms were blocked from Bitcoin services. In 2017, ICOs were banned and domestic crypto exchanges were shut down. In 2021, China imposed a nationwide mining ban and declared all crypto transactions illegal. In 2026, the restrictions were reaffirmed with added attention on offshore stablecoins and RWA tokenization.
The update does not criminalize individual ownership of crypto, based on the source. Still, trading, mining, and commercial activity involving digital assets remain prohibited. Offshore platforms are still out of reach for Chinese users, and companies connected to crypto services face tighter enforcement risk.
Digital yuan remains the state-backed priority
The source also links the crackdown to China’s push for the digital yuan, or e-CNY. The central bank digital currency has been piloted in more than 20 cities since 2020, and it continues to take precedence over privately issued crypto alternatives.
In policy terms, the direction is clear: larger physical gold reserves on one side, tighter control over digital money on the other. The source notes that major China-related crypto announcements have often triggered short-term sell-offs, though longer-term recoveries have followed. It also says the recent drop in Bitcoin below $65,000 was mainly tied to a broader market downturn.