Eight departments jointly issue a document: Further prevent and address risks related to virtual currencies and other related issues

Notice from the People’s Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Disposing of Risks Related to Virtual Currencies and Other Relevant Activities (Yinfa [2026] No. 42)

To the People’s Governments of all provinces, autonomous regions, municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps:

Recently, speculative activities related to virtual currencies and asset tokenization of real-world assets (RWA) have occurred from time to time, disrupting economic and financial order and endangering the property safety of the public. To further prevent and address risks related to virtual currencies and asset tokenization of real-world assets, and to effectively safeguard national security and social stability, in accordance with the “People’s Republic of China People’s Bank Law,” “People’s Republic of China Commercial Bank Law,” “People’s Republic of China Securities Law,” “People’s Republic of China Securities Investment Fund Law,” “People’s Republic of China Futures and Derivatives Law,” “People’s Republic of China Cybersecurity Law,” “People’s Republic of China Renminbi Administration Regulations,” “Regulations on Preventing and Disposing of Illegal Fundraising,” “People’s Republic of China Foreign Exchange Management Regulations,” “People’s Republic of China Telecommunications Regulations,” and other relevant laws, with the consensus of the Central Cyberspace Affairs Office, the Supreme People’s Court, and the Supreme People’s Procuratorate, and with the approval of the State Council, the following notices are issued:

1. Clarify the Nature of Virtual Currencies, Asset Tokenization of Real-World Assets, and Related Business Activities

(1) Virtual currencies do not have the same legal status as legal tender. Virtual currencies such as Bitcoin, Ethereum, Tether, etc., are characterized mainly by being issued outside monetary authorities, utilizing encryption technology and distributed ledger or similar technology, existing in digital form, and lacking legal tender status. They should not and cannot be used as currency for market circulation.

Activities related to virtual currencies are considered illegal financial activities. Conducting legal currency and virtual currency exchanges within the country, virtual currency-to-virtual currency exchanges, buying and selling virtual currencies with a central counterparty, providing information intermediary and pricing services for virtual currency trading, issuing tokens for fundraising, and trading virtual currency-related financial products are suspected of illegal issuance of tokens or securities, unauthorized public issuance of securities, illegal operation of securities and futures businesses, illegal fundraising, and other illegal financial activities. All such activities are strictly prohibited and must be resolutely shut down according to law. Overseas entities and individuals are not allowed to illegally provide virtual currency-related services to domestic entities in any form.

Stablecoins pegged to legal currency have, in circulation, disguised the performance of some functions of legal currency. Without the approval of relevant authorities, no domestic or foreign entity or individual shall issue stablecoins pegged to the Renminbi outside the country.

(2) Asset tokenization of real-world assets refers to activities that use encryption technology and distributed ledger or similar technology to convert ownership rights, income rights, and other rights of assets into tokens (or similar digital tokens) or other rights and debt certificates with token-like features, and then issue and trade these tokens.

Activities involving the domestic issuance of real-world asset tokenization and related intermediary and information technology services are suspected of illegal issuance of tokens or securities, unauthorized public issuance of securities, illegal operation of securities and futures businesses, illegal fundraising, and other illegal financial activities, and should be prohibited; except for activities conducted with the approval of the business regulatory authorities and based on specific financial infrastructure. Overseas entities and individuals are not allowed to illegally provide real-world asset tokenization-related services to domestic entities in any form.

2. Improve Work Mechanisms

(3) Departmental coordination. The People’s Bank of China, together with the National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and the State Administration of Foreign Exchange, will improve the working mechanism, strengthen coordination with the Central Cyberspace Affairs Office, the Supreme People’s Court, and the Supreme People’s Procuratorate, and form a joint effort to guide various regions in preventing and addressing risks related to illegal financial activities involving virtual currencies.

The China Securities Regulatory Commission, together with the National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, People’s Bank of China, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, and the State Administration of Foreign Exchange, will improve the working mechanism, strengthen coordination with the Central Cyberspace Affairs Office, the Supreme People’s Court, and the Supreme People’s Procuratorate, and guide regions in preventing and addressing risks related to illegal financial activities involving asset tokenization of real-world assets.

(4) Strengthen territorial implementation. Provincial governments are responsible for coordinating the prevention and disposal of risks related to virtual currencies and asset tokenization within their administrative regions. Local financial regulatory departments shall take the lead, with participation from branches and dispatched agencies of the State Council’s financial regulatory departments, as well as telecommunications, public security, and market regulation departments, working in coordination with cyberspace authorities, courts, and procuratorates. Establish a normalized working mechanism, connect effectively with relevant central departments, form a joint work pattern of central and local cooperation, and actively prevent and properly handle risks related to virtual currencies and asset tokenization, maintaining economic and financial order and social stability.

3. Strengthen Risk Monitoring, Prevention, and Disposal

(5) Enhance risk monitoring. The People’s Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, and cyberspace authorities will continuously improve monitoring technologies and systems, strengthen cross-departmental data analysis and sharing, establish and improve information sharing and cross-verification mechanisms, and promptly grasp the risk trends of activities related to virtual currencies and asset tokenization of real-world assets. Provincial governments should fully utilize local monitoring and early warning mechanisms, with local financial regulatory departments working with branches and dispatched agencies of the State Council’s financial departments, as well as cyberspace and public security departments, to conduct online monitoring, offline inspections, and fund monitoring, ensuring effective and precise identification of activities related to virtual currencies and asset tokenization, timely sharing of risk information, and improving early warning, verification, and rapid response mechanisms.

(6) Strengthen management of financial, intermediary, and technical service institutions. Financial institutions (including non-bank payment institutions) shall not provide account opening, fund transfer, clearing, or settlement services for activities related to virtual currencies; shall not issue or sell virtual currency-related financial products; shall not include virtual currencies and related financial products as collateral or pledge assets; shall not conduct insurance business related to virtual currencies or include virtual currencies within insurance coverage; and shall enhance risk monitoring, reporting illegal or irregular clues to relevant authorities. Financial institutions (including non-bank payment institutions) shall not provide custody, clearing, or settlement services for unapproved activities related to asset tokenization of real-world assets or related financial products. Intermediary and information technology service providers shall not provide intermediary or technical services for unapproved activities related to asset tokenization of real-world assets or related financial products.

(7) Strengthen management of internet content and access. Internet companies shall not provide online venues, commercial display, marketing, paid traffic, or related services for activities involving virtual currencies or asset tokenization of real-world assets. They should promptly report illegal or irregular clues to relevant authorities and provide technical support and assistance for investigations and law enforcement. Cyberspace, telecommunications, and public security authorities shall, based on clues transferred by financial authorities, promptly shut down and handle websites, mobile applications (including mini-programs), and public accounts involved in activities related to virtual currencies and asset tokenization.

(8) Strengthen registration of business entities and advertising management. Market regulation authorities shall strengthen registration and management of business entities. Companies and individual industrial and commercial households shall not include terms such as “virtual currency,” “virtual assets,” “cryptocurrency,” “encrypted assets,” “stablecoin,” “asset tokenization of real-world assets,” or “RWA” in their names or business scope. They shall also work with financial authorities to strengthen supervision of related advertisements, promptly investigate and punish illegal advertisements.

(9) Continue to rectify virtual currency “mining” activities. The National Development and Reform Commission, together with relevant departments, will strictly control virtual currency “mining” activities and continue to promote rectification work. Provincial governments are responsible for the overall management of “mining” within their regions, following the requirements of the “Notice on Rectifying Virtual Currency ‘Mining’ Activities” (Fagai Xingdong [2021] No. 1283) and the “Guidance Catalog for Industrial Structure Adjustment (2024 Edition).” They shall thoroughly investigate and shut down existing virtual currency “mining” projects, prohibit new “mining” projects, and ban “mining” machine manufacturers from providing sales and related services within the country.

(10) Crack down on illegal financial activities. Upon discovering clues related to illegal financial activities involving virtual currencies or asset tokenization of real-world assets, local financial regulatory departments, branches, and dispatched agencies shall investigate, identify, and handle the issues properly, and hold relevant units and individuals accountable according to law. If crimes are suspected, they shall be transferred to judicial authorities for handling.

(11) Severely crack down on related illegal activities. The Ministry of Public Security, People’s Bank of China, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and judicial and prosecutorial authorities shall, according to their responsibilities, vigorously combat fraud, money laundering, illegal operation, pyramid schemes, illegal fundraising, and other criminal activities related to virtual currencies and asset tokenization, as well as related illegal activities using virtual currencies or asset tokenization as a gimmick.

(12) Strengthen industry self-discipline. Industry associations should strengthen member management and policy publicity, based on their responsibilities, advocate and supervise members to resist illegal financial activities related to virtual currencies and asset tokenization, and impose sanctions on members violating regulatory policies and industry self-discipline rules according to relevant self-regulation rules. Use various industry infrastructure to monitor risks related to virtual currencies and asset tokenization, and promptly transfer clues of issues to relevant authorities.

4. Strict Supervision of Domestic Entities Conducting Related Activities Abroad

(13) Without the approval of relevant authorities, domestic entities and their controlled overseas entities shall not issue virtual currencies abroad.

(14) Domestic entities directly or indirectly engaging in foreign debt-based activities involving real-world asset tokenization, or conducting asset securitization or equity-like real-world asset tokenization activities abroad based on domestic rights and interests, shall be subject to strict supervision by the National Development and Reform Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange, according to their responsibilities and laws. Other forms of real-world asset tokenization activities conducted abroad based on domestic rights and interests shall be supervised by the China Securities Regulatory Commission in conjunction with relevant departments. No unit or individual shall carry out the above activities without approval or filing from relevant authorities.

(15) Overseas subsidiaries and branches of domestic financial institutions providing real-world asset tokenization services abroad shall operate prudently, equipped with professional personnel and systems, effectively prevent operational risks, strictly implement customer access, suitability management, anti-money laundering, and other requirements, and incorporate these activities into their internal compliance and risk control systems. Intermediary and information technology service providers offering services related to foreign debt-based activities or asset tokenization based on domestic rights and interests shall strictly comply with laws and regulations, establish sound compliance internal control systems, strengthen risk management, and report or file relevant activities with relevant regulatory authorities.

5. Strengthen Organizational Implementation

(16) Enhance leadership and coordination. Departments and regions should attach great importance to risk prevention related to virtual currencies and asset tokenization, strengthen organizational leadership, clarify responsibilities, establish a long-term work mechanism with central coordination and local implementation, maintain a high-pressure stance, conduct dynamic risk monitoring, effectively prevent and resolve risks, protect people’s property rights according to law, and fully safeguard economic and financial order and social stability.

(17) Conduct extensive publicity and education. Departments, regions, and industry associations should utilize various media channels to interpret laws and policies, analyze typical cases, and educate on investment risks, promoting awareness of the illegality and hazards of activities related to virtual currencies and asset tokenization, and highlighting potential risks to enhance public risk prevention and identification capabilities.

6. Legal Responsibilities

(18) Those who violate this notice by engaging in illegal financial activities related to virtual currencies or asset tokenization, or providing services for such activities, shall be punished according to relevant laws; if crimes are involved, criminal responsibility shall be pursued. Units and individuals who knowingly or should have known that overseas entities illegally provide virtual currency or asset tokenization services to domestic entities, and still assist them, shall be held accountable according to law; if crimes are involved, criminal responsibility shall be pursued.

(19) Any unit or individual investing in virtual currencies, asset tokenization of real-world assets, or related financial products that violate public order and good customs shall have their civil legal acts invalid, and any losses incurred shall be borne by themselves; if such activities are suspected of disrupting financial order or endangering financial security, relevant authorities shall investigate and handle accordingly.

This notice shall take effect from the date of issuance. The “Notice from the People’s Bank of China and other ten departments on further preventing and disposing of risks related to virtual currency trading speculation” (Yinfa [2021] No. 237) is hereby repealed simultaneously.

People’s Bank of China, National Development and Reform Commission

Ministry of Industry and Information Technology, Ministry of Public Security

State Administration for Market Regulation, China Banking and Insurance Regulatory Commission

China Securities Regulatory Commission, State Administration of Foreign Exchange

February 6, 2026

(Source: People’s Bank of China)