PBOC and Seven Other Departments Issue Document to Prevent and Handle Risks Related to Virtual Currencies and RWA Tokenization

On February 6, 2026, the People’s Bank of China, together with 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, China Securities Regulatory Commission, and the State Administration of Foreign Exchange, issued the Notice on Further Preventing and Addressing Risks Related to Virtual Currencies (the “Notice”), which is effective as of the date of issuance.

The Notice makes it clear that virtual currencies do not have the same legal status as legal tender, and business activities such as the exchange of virtual currencies within China constitute illegal financial activities, which are strictly prohibited and will be banned according to law. Without authorization, neither domestic nor foreign organizations and individuals may issue stablecoins pegged to the Renminbi abroad, and foreign organizations and individuals may not illegally provide relevant services to domestic entities. The Notice further defines real-world asset tokenization as activities involving the issuance and trading of tokens derived from asset rights using cryptographic technology. Related activities within China and unauthorized provision of intermediary or information technology services must be prohibited. It also requires that financial institutions and internet enterprises may not provide support such as accounts, clearing and settlement, custody, or marketing guidance for relevant businesses, and mandates strict regulation of domestic entities issuing virtual currencies abroad and conducting overseas RWA tokenization business based on domestic asset rights.