According to ME News, on February 6 (UTC+8), eight departments, including the People's Bank of China, the National Development and Reform Commission, and the China Securities Regulatory Commission, jointly issued the "Notice on Further Preventing and Handling Risks Related to Virtual Currencies" (Yinfa [2026] No. 42). This notice clarifies that virtual currencies do not have the same legal status as fiat currency, and that engaging in virtual currency exchange, token issuance financing, and derivatives trading within China constitutes illegal financial activity and is strictly prohibited. The notice also defines Real-World Asset (RWA) tokenization as the activity of converting asset rights into tokens using cryptographic technology, emphasizing that illegally conducting RWA tokenization and providing intermediary and technical services within China constitutes illegal financial activity and should be prohibited.
The notice stipulates that no entity or individual may issue stablecoins pegged to the Renminbi overseas without the consent of relevant departments. For domestic entities conducting RWA (Real Money Token) business overseas based on domestic interests, the China Securities Regulatory Commission (CSRC), in conjunction with relevant departments, will implement strict supervision according to their respective responsibilities; such activities are prohibited without approval or registration. Financial institutions and non-bank payment institutions are prohibited from providing account opening, fund transfer, clearing and settlement, and custody services for virtual currencies and unauthorized RWA business. Internet companies are prohibited from providing online business venues, commercial displays, marketing and promotion services for such activities.
Furthermore, the notice requires continued rectification of virtual currency "mining" activities, strictly prohibiting the addition of new projects and the sale of "mining machines" within the country. The notice emphasizes that any entity or individual investing in virtual currencies, RWA tokens, and related financial products that violates public order and good morals will have their related civil legal acts invalid, and any losses arising therefrom shall be borne by the individual. This notice takes effect from the date of its issuance, and document No. 237 of 2021 issued by the Ministry of Finance is simultaneously repealed. (Source: ME)
