Full Text | Multiple Ministries and Commissions Issue Notice on Further Preventing and Disposing Risks Related to Virtual Currency, etc.
The People's Bank of China, along with seven other ministries and regulatory bodies, issued a comprehensive notice (Yin Fa [2026] No. 42) on February 6th, 2026, to further prevent and address risks associated with virtual currencies and Real World Asset (RWA) tokenization. This new policy, which replaces a 2021 notice, takes immediate action to curb speculative activities that disrupt financial order and endanger public property.
The notice explicitly states that virtual currencies like Bitcoin and Ethereum are not legal tender and cannot be used as currency in China. All related business activities, including exchanges, trading, and financing, are deemed illegal financial activities and are strictly prohibited. The issuance of RMB-pegged stablecoins by any entity, domestic or foreign, is also expressly forbidden without official approval.
For RWA tokenization—converting asset ownership into digital tokens—all domestic activities and the provision of related services are prohibited as illegal financial operations unless specifically approved and conducted through designated financial infrastructure.
The policy establishes a multi-departmental coordination mechanism for risk monitoring and enforcement. Key measures include:
* Prohibiting financial institutions from providing any services for virtual currency or unauthorized RWA businesses.
* Banning internet companies from offering online venues, marketing, or technical support for these activities.
* Forbidding the use of terms like "virtual currency" or "RWA" in business registrations and advertisements.
* Continuing the crackdown on cryptocurrency "mining" activities.
The notice also imposes strict regulations on overseas activities. Domestic entities are prohibited from issuing virtual currencies abroad. RWA tokenization activities overseas that involve Chinese assets or debt must be strictly supervised under the principle of "same business, same risk, same rules," requiring prior approval from relevant authorities.
Finally, the policy emphasizes severe legal consequences. Violations will be punished, and criminal offenses will be prosecuted. Investments in these areas are deemed to violate public order, making related civil legal actions invalid, with investors bearing their own losses. Widespread public education on the risks and illegality of these activities is also mandated.
marsbit02/06 13:49
