Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Activities

To the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps:

Recently, speculative activities involving virtual currencies and real-world asset (RWA) tokenization have occurred from time to time, disrupting the economic and financial order and endangering people's property. To further prevent and address risks related to virtual currencies and real-world asset tokenization and effectively safeguard national security and social stability, pursuant to provisions including the Law of the People's Republic of China on the People's Bank of China, the Commercial Bank Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Securities Investment Fund Law of the People's Republic of China, the Futures and Derivatives Law of the People's Republic of China, the Cybersecurity Law of the People's Republic of China, the Regulations of the People's Republic of China on the Administration of Renminbi, the Regulations on Preventing and Handling Illegal Fundraising, the Regulations of the People's Republic of China on Foreign Exchange Administration, and the Telecommunications Regulations of the People's Republic of China, and following agreement with the Cyberspace Administration of China, the Supreme People's Court and the Supreme People's Procuratorate, and with the consent of the State Council, the following matters are hereby notified:

I. Clarify the essential nature of virtual currencies, real-world asset tokenization and related business activities

(1) Virtual currencies do not have a legal status equivalent to legal tender. Virtual currencies such as Bitcoin, Ether and Tether are characterized primarily by their issuance by entities other than monetary authorities, their use of cryptography and distributed ledgers or similar technologies, and their existence in digital form. They are not legal tender and should not and cannot circulate or be used as currency in the market.

Business activities related to virtual currencies constitute illegal financial activities. Conducting within China virtual currency-related business activities, including exchange between legal tender and virtual currencies, exchange between virtual currencies, buying or selling virtual currencies as a central counterparty, providing information intermediation and pricing services for virtual currency transactions, token issuance financing, and trading in virtual currency-related financial products, is suspected of involving illegal financial activities such as unlawful sales of token vouchers, unauthorized public securities offerings, unlawful operation of securities or futures businesses, and illegal fundraising. All such activities are strictly prohibited and shall be resolutely banned in accordance with the law. Overseas entities and individuals must not unlawfully provide virtual currency-related services to domestic entities in any form.

Stablecoins pegged to legal tender perform, in a disguised form, some functions of legal tender when they circulate and are used. Without the consent of the relevant authorities in accordance with laws and regulations, no domestic or overseas entity or individual may issue renminbi-pegged stablecoins outside China.

(2) Real-world asset tokenization refers to activities in which cryptography and distributed ledgers or similar technologies are used to convert ownership of assets, rights to income from assets or similar rights into tokens or other interests or bond certificates with the characteristics of tokens, and to issue and trade them.

Conducting real-world asset tokenization activities within China, and providing related intermediation, information technology or other services, is suspected of involving illegal financial activities such as unlawful sales of token vouchers, unauthorized public securities offerings, unlawful operation of securities or futures businesses, and illegal fundraising, and shall be prohibited. An exception applies to relevant business activities conducted through specified financial infrastructure with the consent of the competent business authorities in accordance with laws and regulations. Overseas entities and individuals must not unlawfully provide real-world asset tokenization-related services to domestic entities in any form.

II. Improve working mechanisms

(3) Strengthen interdepartmental coordination. The People's Bank of China, together with departments including the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission and the State Administration of Foreign Exchange, shall improve working mechanisms and strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court and the Supreme People's Procuratorate to combine their efforts and coordinate guidance to all regions on preventing and addressing risks from illegal financial activities related to virtual currencies.

The China Securities Regulatory Commission, together with departments including the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the National Financial Regulatory Administration and the State Administration of Foreign Exchange, shall improve working mechanisms and strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court and the Supreme People's Procuratorate to combine their efforts and coordinate guidance to all regions on preventing and addressing risks from illegal financial activities related to real-world asset tokenization.

(4) Strengthen implementation at the local level. Each provincial people's government shall take overall responsibility for preventing and addressing risks related to virtual currencies and real-world asset tokenization within its administrative region. Local financial administration departments shall take the lead, with participation from branches and dispatched offices of the State Council's financial regulatory authorities and departments responsible for telecommunications, public security and market regulation, working in coordination with cyberspace authorities, people's courts and people's procuratorates. They shall improve regular working mechanisms and link them effectively with the relevant mechanisms of central departments, forming a framework of central-local coordination and coordination between sectoral and territorial authorities. They shall proactively prevent and properly handle risks related to virtual currencies and real-world asset tokenization and maintain economic and financial order and social stability.

III. Strengthen risk monitoring, prevention and response

(5) Strengthen risk monitoring. Departments including the People's Bank of China, the China Securities Regulatory Commission, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration of Foreign Exchange and cyberspace authorities shall continuously improve monitoring technologies and supporting systems, strengthen integrated interdepartmental data analysis and sharing, establish and improve information-sharing and cross-checking mechanisms, and promptly identify risk trends in activities related to virtual currencies and real-world asset tokenization. Each provincial people's government shall fully utilize local monitoring and early-warning mechanisms. Local financial administration departments, together with branches and dispatched offices of the State Council's financial regulatory authorities, cyberspace authorities, public security authorities and others, shall effectively coordinate online monitoring, offline investigation and fund monitoring; efficiently and accurately identify relevant activities; promptly share risk information; and improve rapid-response mechanisms for transmitting, verifying and acting upon early-warning information.

(6) Strengthen the administration of financial, intermediary, technology and other service providers. Financial institutions, including non-bank payment institutions, must not provide account opening, fund transfers, clearing, settlement or other services for virtual currency-related business activities; issue or sell virtual currency-related financial products; include virtual currencies or related financial products within the scope of assets accepted as collateral or pledges; conduct virtual currency-related insurance business; or include virtual currencies within insurance coverage. They shall strengthen risk monitoring and promptly report indications of unlawful or non-compliant conduct to the relevant authorities. Financial institutions, including non-bank payment institutions, must not provide custody, clearing, settlement or similar services for real-world asset tokenization-related business or related financial products for which consent has not been obtained. Relevant intermediaries and information technology service providers must not provide intermediation, technology or other services for such business or products for which consent has not been obtained.

(7) Strengthen the management of Internet information content and access. Internet enterprises must not provide online business premises, commercial displays, marketing, paid traffic referrals or other services for business activities related to virtual currencies or real-world asset tokenization. They shall promptly report indications of unlawful or non-compliant conduct to the relevant authorities and provide technical support and assistance for relevant investigations and criminal inquiries. Based on leads referred by financial regulatory authorities, cyberspace, telecommunications and public security authorities shall promptly close or otherwise deal with, in accordance with the law, websites, mobile applications including mini-programs, public accounts and similar channels conducting such business activities.

(8) Strengthen business entity registration and advertising administration. Market regulation authorities shall strengthen the administration of business entity registration. The registered names and business scopes of enterprises and individual industrial and commercial households must not contain wording or content such as 'virtual currency', 'virtual assets', 'cryptocurrency', 'crypto-assets', 'stablecoin', 'real-world asset tokenization' or 'RWA'. Market regulation authorities, together with financial regulatory authorities, shall strengthen oversight of advertising related to virtual currencies or real-world asset tokenization in accordance with the law and promptly investigate and deal with unlawful advertisements.

(9) Continue rectifying virtual currency mining activities. The National Development and Reform Commission, together with relevant departments, shall strictly control mining activities and continue advancing their rectification. Each provincial people's government bears overall responsibility for mining rectification within its administrative region. In accordance with the requirements of the Notice on Rectifying Virtual Currency Mining Activities issued by the National Development and Reform Commission and other departments (Fa Gai Yun Xing [2021] No. 1283), and the provisions of the Guiding Catalogue for Industrial Restructuring (2024 Edition), they shall comprehensively identify, investigate and close existing mining projects, strictly prohibit new mining projects, and strictly prohibit mining-machine manufacturers from providing mining-machine sales and other services within China.

(10) Crack down on relevant illegal financial activities. Upon discovering indications of illegal financial activities related to virtual currencies or real-world asset tokenization, relevant authorities, including local financial administration departments and branches and dispatched offices of the State Council's financial regulatory authorities, shall promptly investigate and determine their nature in accordance with the law, handle them appropriately, and rigorously pursue the legal liability of the entities and individuals concerned. Suspected crimes shall be referred to the judicial authorities in accordance with the law.

(11) Crack down on relevant illegal and criminal activities. Departments including the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the National Financial Regulatory Administration and the China Securities Regulatory Commission, together with adjudicatory and procuratorial organs, shall, within their respective responsibilities, rigorously combat fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising and other unlawful or criminal activities related to virtual currencies or real-world asset tokenization, as well as relevant unlawful or criminal activities using virtual currencies or real-world asset tokenization as a selling point, in accordance with the law.

(12) Strengthen industry self-regulation. Relevant industry associations shall strengthen member management and policy communication and, within their respective roles and responsibilities, advocate and urge members to resist illegal financial activities related to virtual currencies or real-world asset tokenization. Members that violate regulatory policies or industry self-regulatory rules shall be disciplined in accordance with relevant self-regulatory provisions. Various types of industry infrastructure shall be used to monitor related risks, and leads shall be promptly referred to the relevant authorities.

IV. Strictly regulate domestic entities conducting relevant business overseas

(13) Without the consent of the relevant authorities in accordance with laws and regulations, domestic entities and overseas entities under their control must not issue virtual currencies outside China.

(14) Where domestic entities directly or indirectly conduct real-world asset tokenization business overseas in the form of external debt, or conduct overseas real-world asset tokenization business resembling asset securitization or having an equity nature based on ownership of domestic assets, rights to income from such assets or similar rights, collectively referred to below as 'domestic rights and interests', the National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and other relevant authorities shall, within their respective responsibilities, exercise strict oversight in accordance with laws and regulations and the principle of 'same business, same risks, same rules'. Other forms of overseas real-world asset tokenization business conducted by domestic entities on the basis of domestic rights and interests shall be regulated by the China Securities Regulatory Commission together with relevant authorities within their respective responsibilities. No entity or individual may conduct the foregoing business without completing consent, filing or other procedures with the relevant authorities as required.

(15) Overseas subsidiaries and branches of domestic financial institutions shall provide real-world asset tokenization-related services overseas lawfully and prudently, be equipped with professional personnel and systems, effectively prevent business risks, strictly implement requirements concerning customer admission, suitability management and anti-money laundering, and be included in the compliance and risk management systems of their domestic financial institutions. Intermediaries and information technology service providers serving domestic entities that directly or indirectly conduct real-world asset tokenization business overseas in the form of external debt, or conduct related business overseas on the basis of domestic rights and interests, shall strictly comply with laws and regulations, establish and improve relevant compliance and internal-control systems under applicable requirements, strengthen business and risk controls, and submit details of such business to the relevant authorities for approval or filing.

V. Strengthen organization and implementation

(16) Strengthen organizational leadership and overall coordination. All departments and regions shall attach great importance to preventing risks related to virtual currencies and real-world asset tokenization, strengthen organizational leadership, clarify responsibilities, and establish a long-term working mechanism involving central coordination, local implementation and shared responsibility. They shall maintain strong enforcement pressure, monitor risks dynamically, prevent and resolve risks through effective and orderly action, protect people's property in accordance with the law, and make every effort to maintain economic and financial order and social stability.

(17) Conduct extensive public communication and education. All departments, regions and industry associations shall make full use of the media and other communication channels to explain the illegality, harmful effects and forms of business related to virtual currencies and real-world asset tokenization, through methods including explanations of laws and policies, analyses of typical cases and investment risk education. They shall fully highlight potential risks and hazards and improve the public's awareness of risk prevention and ability to identify risks.

VI. Legal liability

(18) Those conducting illegal financial activities related to virtual currencies or real-world asset tokenization, or providing services for related business in violation of this Notice, shall be penalized under the relevant provisions. Where a crime is constituted, criminal liability shall be pursued in accordance with the law. Relevant liability shall be pursued in accordance with the law against domestic entities and individuals that know or ought to know that overseas entities unlawfully provide virtual currency or real-world asset tokenization-related services within China but nevertheless assist them. Where a crime is constituted, criminal liability shall be pursued in accordance with the law.

(19) Where an entity or individual invests in virtual currencies, real-world asset tokens or related financial products in violation of public order and good morals, the relevant civil juristic act is void and the resulting losses shall be borne by that investor. Activities suspected of undermining the financial order or endangering financial security shall be investigated and dealt with by the relevant authorities in accordance with the law.

This Notice takes effect on the date of publication. The Notice on Further Preventing and Addressing Risks Arising from Virtual Currency Trading and Speculation (Yin Fa [2021] No. 237), issued by the People's Bank of China and nine other departments, is 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

National Financial Regulatory Administration

China Securities Regulatory Commission

State Administration of Foreign Exchange

6 February 2026

Officials from the People's Bank of China and the China Securities Regulatory Commission Answer Questions from the Press

Recently, eight departments, including the People's Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission and the State Administration of Foreign Exchange, jointly issued the Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Relevant Activities, referred to below as 'the Notice'. Officials from the People's Bank of China and the China Securities Regulatory Commission have answered questions from the press concerning the Notice.

I. What is the background to the Notice?

In 2021, virtual currency trading and speculation were widespread, disrupting the economic and financial order and endangering people's property. In accordance with decisions and arrangements of the CPC Central Committee and the State Council, the People's Bank of China and relevant departments jointly issued the Notice on Further Preventing and Addressing Risks Arising from Virtual Currency Trading and Speculation, resolutely combating such trading and speculation and rectifying disorder in virtual currencies, with significant results.

Recently, influenced by various factors, speculative activities related to virtual currencies and real-world asset tokenization have occurred from time to time, presenting new circumstances and challenges for risk prevention and control. To further improve regulatory policies, prevent and address related risks, and effectively safeguard national security and social stability, eight departments — the People's Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission and the State Administration of Foreign Exchange — worked with the Cyberspace Administration of China, the Supreme People's Court and the Supreme People's Procuratorate. Drawing on experience from earlier work and taking account of new risk conditions, they revised the previous document to produce the Notice.

II. How does the Notice characterize virtual currencies, real-world asset tokenization and related business activities?

Regarding virtual currencies, China has long maintained a prohibitive policy position on related business activities within its territory. In 2013, the People's Bank of China and four other departments jointly issued the Notice on Preventing Bitcoin Risks, clarifying that Bitcoin is a particular type of virtual commodity and cannot and should not circulate or be used as currency in the market. The Notice on Further Preventing and Addressing Risks Arising from Virtual Currency Trading and Speculation issued in 2021 further clarified that Bitcoin, Ether and stablecoins such as Tether do not have a legal status equivalent to legal tender, and that conducting virtual currency-related business within China constitutes illegal financial activity and is strictly prohibited. The present Notice continues the policy position maintained in recent years, reiterating that virtual currencies do not have a legal status equivalent to legal tender, that conducting related business within China constitutes illegal financial activity, and that overseas entities and individuals must not unlawfully provide related services to domestic entities in any form.

Regarding real-world asset tokenization, this field has developed rapidly in recent years, and relevant countries and regions have strengthened oversight through legislation, improved rules and other measures. The Notice clarifies that real-world asset tokenization primarily refers to activities in which cryptography and distributed ledgers or similar technologies are used to convert ownership of assets, rights to income from assets or similar rights into tokens or other interests or bond certificates with the characteristics of tokens, and to issue and trade them. The Notice emphasizes that conducting real-world asset tokenization within China, or providing related intermediation, information technology or other services, is suspected of involving illegal financial activities such as unlawful sales of token vouchers, unauthorized public securities offerings, unlawful operation of securities or futures businesses, and illegal fundraising, and shall be prohibited. Relevant business conducted through specified financial infrastructure with the consent of the competent business authorities in accordance with laws and regulations is excepted. Overseas entities and individuals must not unlawfully provide related services to domestic entities in any form.

III. What regulatory requirements does the Notice impose concerning virtual currencies?

First, at the present stage virtual currencies cannot effectively meet requirements concerning customer identification, anti-money laundering and similar matters, and there are risks of their use for money laundering, fundraising fraud, unlawful cross-border transfers of funds and other illegal activities. The Notice clarifies that China maintains a prohibitive domestic policy on virtual currencies: related business constitutes illegal financial activity, is strictly prohibited, and shall be resolutely banned in accordance with the law.

Second, virtual currencies rely on blockchain technology, support peer-to-peer transactions and transcend the physical concept of national borders, making related risks highly susceptible to cross-border transmission. International financial organizations, central banks and other financial regulatory authorities generally take a prudent stance. To effectively prevent risks, the Notice expressly provides that, without the consent of relevant authorities in accordance with laws and regulations, domestic entities and overseas entities under their control must not issue virtual currencies outside China.

Third, stablecoins pegged to legal tender perform, in a disguised form, some functions of legal tender when they circulate and are used, raising issues of monetary sovereignty. The Notice emphasizes that, without the consent of relevant authorities in accordance with laws and regulations, no domestic or overseas entity or individual may issue renminbi-pegged stablecoins outside China.

IV. What requirements does the Notice set for domestic entities conducting real-world asset tokenization-related business overseas?

First, it imposes strict oversight of relevant business conducted overseas. Under the regulatory principle of 'same business, same risks, same rules', where domestic entities directly or indirectly conduct real-world asset tokenization business overseas in the form of external debt, or conduct overseas business resembling asset securitization or having an equity nature based on ownership of domestic assets, rights to income from such assets or similar rights, collectively referred to below as 'domestic rights and interests', the National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and other relevant authorities shall exercise strict oversight in accordance with laws and regulations within their respective responsibilities. Other forms of overseas real-world asset tokenization business conducted by domestic entities on the basis of domestic rights and interests shall be regulated by the China Securities Regulatory Commission together with relevant authorities within their respective responsibilities. No entity or individual may conduct the foregoing business without completing consent, filing or other procedures with the relevant authorities as required.

Second, it strengthens the administration of financial institutions, intermediaries and information technology service providers. Where overseas subsidiaries and branches of domestic financial institutions provide real-world asset tokenization-related services overseas, they shall be included in the compliance and risk management systems of their domestic financial institutions and strictly implement requirements concerning customer admission, suitability management and anti-money laundering. In addition, intermediaries and information technology service providers serving domestic entities that directly or indirectly conduct real-world asset tokenization business overseas in the form of external debt, or conduct related business overseas based on domestic rights and interests, shall establish and improve relevant compliance and internal-control systems, strengthen business and risk controls, and submit details of their business for approval or filing in accordance with applicable requirements.

V. What specific working measures does the Notice set out?

First, it establishes a framework of central-local coordination and coordination between sectoral and territorial authorities. At central-department level, the People's Bank of China and the China Securities Regulatory Commission shall each work with relevant departments to improve mechanisms for preventing and addressing risks related to virtual currencies and real-world asset tokenization respectively. At local level, each provincial people's government takes overall responsibility for preventing and addressing both types of risk within its administrative region. Local financial administration departments shall take the lead in improving regular working mechanisms and linking them effectively with those of central departments, thereby strengthening local implementation.

Second, it strengthens risk prevention and response. It combines interdepartmental regulatory efforts and applies a comprehensive set of measures covering risk monitoring, governance of fund flows and information flows, market entity registration and advertising administration, rectification of virtual currency mining, combating illegal and criminal activities, and strict regulation of domestic entities conducting business overseas. Relevant industry associations shall strengthen self-regulation, establishing comprehensive safeguards against risks across multiple dimensions.

Third, it strengthens organization and implementation. Organizational leadership and overall coordination shall be strengthened, the responsibilities of all departments and regions clarified, and a long-term working mechanism involving central coordination, local implementation and shared responsibility established, so that risks related to virtual currencies and real-world asset tokenization are effectively prevented and addressed through orderly and effective action. At the same time, extensive public communication and education shall be conducted. Through explanations of laws and policies, analyses of typical cases and investment risk education, all departments, regions and industry associations shall fully highlight potential risks and hazards in related business and improve the public's awareness of risk prevention and ability to identify risks.