People's governments of all provinces, autonomous regions, and municipalities directly under the central government, Xinjiang Production and Construction Corps:
Recently, speculative activities related to virtual currencies and the tokenization of real-world assets (RWA) have occurred from time to time, disrupting the economic and financial order and endangering the property safety of the people. In order to further prevent and address risks related to virtual currencies and the tokenization of real-world assets, and to effectively maintain national security and social stability, in accordance with the &#34;People's Bank of China Law,&#34; &#34;Commercial Bank Law of the People's Republic of China,&#34; &#34;Securities Law of the People's Republic of China,&#34; &#34;Securities Investment Fund Law of the People's Republic of China,&#34; &#34;Futures and Derivatives Law of the People's Republic of China,&#34; &#34;Cybersecurity Law of the People's Republic of China,&#34; &#34;Regulations on the Administration of the Renminbi of the People's Republic of China,&#34; &#34;Regulations on Preventing and Handling Illegal Fundraising,&#34; &#34;Foreign Exchange Control Regulations of the People's Republic of China,&#34; &#34;Telecommunications Regulations of the People's Republic of China,&#34; and other provisions, and after reaching consensus with the Central Cyberspace Administration, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the following notice is hereby issued regarding relevant matters:
I. Clarify the essential attributes of virtual currencies, the tokenization of real-world assets, and related business activities
(1) Virtual currencies do not have the same legal status as legal tender. Virtual currencies such as Bitcoin, Ethereum, and Tether have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, and existing in digital form. They do not have legal tender status and should not and cannot circulate as currency in the market.
Activities related to virtual currencies are considered illegal financial activities. Engaging in the exchange of legal tender for virtual currencies, exchanges between virtual currencies, buying and selling virtual currencies as a central counterparty, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of financial products related to virtual currencies within the territory is strictly prohibited and will be resolutely banned by law. Overseas entities and individuals are not allowed to illegally provide virtual currency-related services to domestic entities in any form.
Stablecoins pegged to legal tender have, in effect, fulfilled some functions of legal tender during circulation. Without the approval of relevant departments in accordance with laws and regulations, no domestic or foreign entities or individuals may issue stablecoins pegged to the Renminbi abroad.
(2) The tokenization of real-world assets refers to the use of encryption technology and distributed ledger or similar technology to convert ownership, income rights, and other rights into tokens (certificates) or other rights and bond certificates with token (certificate) characteristics, and to engage in issuance and trading activities.
Engaging in the tokenization of real-world assets within the territory, as well as providing related intermediary and information technology services, is suspected of illegal activities such as illegal issuance of token certificates, unauthorized public issuance of securities, illegal operation of securities and futures businesses, and illegal fundraising, and should be prohibited; except for related business activities conducted based on specific financial infrastructure with the approval of the competent business authorities in accordance with laws and regulations. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
II. Improve the working mechanism
(3) Departmental Coordination and Collaboration. 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 Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange, will improve the working mechanism and strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate to form a joint effort, guiding various regions in risk prevention and disposal of illegal financial activities related to virtual currencies.
The China Securities Regulatory Commission, in conjunction with 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 Financial Regulatory Administration, and the State Administration of Foreign Exchange, will improve the working mechanism and strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate to form a joint effort, guiding various regions in risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(4) Strengthening Local Implementation. Provincial-level people's governments are responsible for the risk prevention and disposal of virtual currencies and the tokenization of real-world assets within their administrative regions, led by local financial management departments, with participation from branches and dispatched agencies of the State Council's financial management departments, as well as telecommunications authorities, public security, market regulation, and other departments. They will coordinate with cyberspace departments, people's courts, and people's procuratorates to establish a normalized working mechanism, effectively connect with the relevant working mechanisms of central departments, and form a collaborative working pattern between central and local authorities, actively preventing and properly handling risks related to virtual currencies and the tokenization of real-world assets, maintaining economic and financial order and social stability.
III. Strengthening Risk Monitoring, Prevention, and Disposal
(5) Enhancing Risk Monitoring. 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 departments will continuously improve monitoring technologies and system support, strengthen cross-departmental data analysis and sharing, establish and improve information sharing and cross-validation mechanisms, and timely grasp the risk situation of activities related to virtual currencies and the tokenization of real-world assets. Provincial-level people's governments will fully utilize local monitoring and early warning mechanisms, with local financial management departments working with branches and dispatched agencies of the State Council's financial management departments, as well as cyberspace, public security, and other departments to ensure effective coordination of online monitoring, offline investigations, and fund monitoring, efficiently and accurately identifying activities related to virtual currencies and the tokenization of real-world assets, timely sharing risk information, and improving the rapid response mechanism for warning information transmission, verification, and disposal.
(6) Strengthening Management of Financial, Intermediary, and Technical Service Institutions. Financial institutions (including non-bank payment institutions) must not provide account opening, fund transfer, and clearing services for activities related to virtual currencies, must not issue and sell financial products related to virtual currencies, must not include virtual currencies and related financial products as collateral, must not engage in insurance business related to virtual currencies or include virtual currencies within the scope of insurance liability, and must enhance risk monitoring, reporting any clues of illegal or non-compliant issues to relevant departments in a timely manner. Financial institutions (including non-bank payment institutions) must not provide custody, clearing, and settlement services for unauthorized activities related to the tokenization of real-world assets and related financial products. Relevant intermediary institutions and information technology service institutions must not provide intermediary, technical, and other services for unauthorized activities related to the tokenization of real-world assets and related financial products
(7) Strengthen the management of internet information content and access. Internet companies must not provide network operating venues, commercial displays, marketing promotions, paid traffic diversion, and other services for virtual currency and tokenization of real-world assets related business activities. Any clues regarding illegal activities should be reported to relevant departments in a timely manner, and technical support and assistance should be provided for related investigations. The internet information, telecommunications authorities, and public security departments shall promptly close and handle websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and tokenization of real-world assets related business activities based on clues transferred by financial management departments.
(8) Strengthen the registration and advertising management of operating entities. Market regulatory departments shall enhance the management of registration and registration of operating entities. The registered names and business scopes of enterprises and individual businesses must not contain terms or content such as &#34;virtual currency,&#34; &#34;virtual assets,&#34; &#34;cryptocurrency,&#34; &#34;crypto assets,&#34; &#34;stablecoins,&#34; &#34;tokenization of real-world assets,&#34; &#34;RWA,&#34; etc. Market regulatory departments, in conjunction with financial management departments, shall strengthen the regulation of advertisements related to virtual currency and tokenization of real-world assets in accordance with the law and promptly investigate and deal with relevant illegal advertisements.
(9) Continuously rectify virtual currency &#34;mining&#34; activities. The National Development and Reform Commission, in conjunction with relevant departments, shall strictly control virtual currency &#34;mining&#34; activities and continue to promote the rectification of virtual currency &#34;mining&#34; activities. Provincial-level people's governments are fully responsible for the &#34;mining&#34; rectification work within their administrative regions, and shall comprehensively sort out and shut down existing virtual currency &#34;mining&#34; projects in accordance with the requirements of the National Development and Reform Commission and other departments' &#34;Notice on Rectifying Virtual Currency 'Mining' Activities&#34; (Fa Gai Yun [2021] No. 1283) and the &#34;Guidance Catalog for Industrial Structure Adjustment (2024 Edition).&#34; New &#34;mining&#34; projects are strictly prohibited, and &#34;mining machine&#34; manufacturers are prohibited from providing various services such as &#34;mining machine&#34; sales within the country.
(10) Severely crack down on related illegal financial activities. Upon discovering clues regarding illegal financial activities related to virtual currency and tokenization of real-world assets, local financial management departments, branches, and dispatched agencies of the State Council's financial management departments and other relevant departments shall promptly investigate, identify, and properly handle the situation in accordance with the law, and seriously pursue the legal responsibilities of relevant units and individuals. Those suspected of committing crimes shall be transferred to judicial authorities for handling in accordance with the law.
(11) Severely crack down on related illegal and criminal activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the Financial Regulatory Administration, the China Securities Regulatory Commission, and other departments, as well as judicial and prosecutorial authorities, shall severely crack down on illegal and criminal activities related to virtual currency, tokenization of real-world assets, such as fraud, money laundering, illegal operations, pyramid schemes, illegal fundraising, and other illegal activities, as well as related illegal activities conducted under the guise of virtual currency and tokenization of real-world assets.
(12) Strengthen industry self-discipline management. Relevant industry associations should strengthen member management and policy promotion, based on their responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and tokenization of real-world assets, and impose penalties on member units that violate regulatory policies and industry self-discipline rules in accordance with relevant self-discipline management regulations. Conduct risk monitoring related to virtual currency and tokenization of real-world assets relying on various industry infrastructures, and promptly transfer problem clues to relevant departments
IV. Strict Regulation on Domestic Entities Conducting Related Businesses Abroad
(13) Without the approval of relevant departments in accordance with laws and regulations, domestic entities and their controlled overseas entities are prohibited from issuing virtual currencies abroad.
(14) Domestic entities that directly or indirectly conduct tokenization of real-world assets in the form of foreign debt abroad, or conduct asset securitization-like businesses with equity nature based on domestic asset ownership, income rights, etc. (hereinafter collectively referred to as domestic rights) abroad, shall be strictly regulated by the National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments according to their responsibilities, in accordance with the principle of &#34;same business, same risk, same rules.&#34; For other forms of tokenization of real-world assets conducted by domestic entities abroad based on domestic rights, the China Securities Regulatory Commission, in conjunction with relevant departments, shall supervise according to their responsibilities. Without the consent or filing of relevant departments, no unit or individual may engage in the aforementioned businesses.
(15) The overseas subsidiaries and branches of domestic financial institutions providing tokenization-related services for real-world assets abroad must act cautiously and in accordance with the law, equipping professional personnel and systems to effectively prevent business risks, strictly implementing customer access, suitability management, anti-money laundering requirements, and incorporating them into the compliance risk management system of domestic financial institutions. Intermediary institutions and information technology service institutions providing services for domestic entities conducting tokenization of real-world assets in the form of foreign debt abroad, or conducting tokenization-related businesses based on domestic rights abroad, must strictly comply with legal regulations, establish and improve relevant compliance internal control systems according to relevant normative requirements, strengthen business and risk control, and report or file the relevant business activities with the relevant management departments.
V. Strengthening Organizational Implementation
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the risk prevention work related to virtual currencies and tokenization of real-world assets, strengthen organizational leadership, clarify work responsibilities, and form a long-term working mechanism of central coordination, local implementation, and joint responsibility, maintaining a high-pressure stance, dynamically monitoring risks, effectively and orderly preventing and resolving risks, legally protecting the property safety of the people, and fully maintaining economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should fully utilize various media and communication channels to promote the illegality, harm, and manifestations of virtual currencies and tokenization of real-world assets through legal policy interpretation, analysis of typical cases, investment risk education, etc., fully alerting to potential risks and enhancing the public's risk prevention awareness and identification ability.
VI. Legal Responsibility
(18) Those who violate the provisions of this notice to engage in illegal financial activities related to virtual currencies and tokenization of real-world assets, as well as those who provide services for virtual currencies and tokenization-related businesses, shall be punished in accordance with relevant regulations; if a crime is constituted, criminal responsibility shall be pursued according to law. Domestic units and individuals who knowingly or should have known that overseas entities illegally provide virtual currencies and tokenization-related services to the domestic market and still assist them shall be held legally responsible; if a crime is constituted, criminal responsibility shall be pursued according to law
(19) Any unit or individual investing in virtual currencies, tokenized real-world assets, and related financial products that violate public order and good customs shall have their relevant civil legal actions deemed invalid, and any resulting losses shall be borne by themselves; those suspected of disrupting financial order or endangering financial security shall be investigated and dealt with by the relevant authorities in accordance with the law.
This notice shall take effect from the date of publication. The People's Bank of China and ten other departments' &#34;Notice on Further Preventing and Dealing with Risks of Virtual Currency Trading Speculation&#34; (Yin Fa [2021] No. 237) is hereby abolished.
Risk Warning and Disclaimer
The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at their own risk

The People's Bank of China and eight other departments issued a notice emphasizing the continued rectification of virtual currency "mining" activities. The National Development and Reform Commission and relevant departments will strictly control such activities, and provincial governments are responsible for the rectification work in their respective regions, conducting a comprehensive inspection and shutting down existing "mining" projects, prohibiting new projects and the sale of "mining machines."

- The government has issued regulations to combat illegal activities related to virtual currencies and real-world asset tokenization, emphasizing their lack of legal status equivalent to fiat currencies.  
- Activities like cryptocurrency exchanges and related financial services without government approval are strictly prohibited, with immediate consequences for offenders.  
- These measures aim to protect public property safety, maintain economic stability, and prevent risks associated with virtual currencies and tokenization in China.

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China's central bank and eight other departments: Continuing to regulate virtual currency "mining" activities