The People's Bank of China and seven other departments: Virtual currencies do not have the same legal status as fiat currency, and virtual currency-related business activities are considered illegal financial activities.

On February 6, the People’s Bank of China and seven other departments issued a notice on further preventing and resolving risks related to virtual currencies and other issues. The notice states that virtual currencies do not have the same legal status as fiat currency. Virtual currencies such as Bitcoin, Ethereum, and Tether have main characteristics including being issued outside the monetary authorities, utilizing encryption technology and distributed ledger or similar technology, and existing in digital form. They lack legal tender status and should not and cannot be used as currency for circulation in the market. Virtual currency-related activities are considered illegal financial activities. Conducting activities such as exchanging fiat currency for virtual currency within the country, exchanging between virtual currencies, buying and selling virtual currencies with a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance and financing, and trading virtual currency-related financial products are suspected of illegal activities such as illegal issuance of tokens and tickets, unauthorized public issuance of securities, illegal operation of securities and futures businesses, and illegal fundraising. All such activities are strictly prohibited and will 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 fiat currency have, in circulation, covertly performed some functions of legal currency. Without the approval of relevant authorities in accordance with laws and regulations, no domestic or foreign entity or individual is allowed to issue stablecoins pegged to the Renminbi outside the country.