The China Securities Regulatory Commission was among eight authorities that issued a revised notice on risks linked to virtual currency and real-world asset tokenization, accompanied by an explanatory question-and-answer from officials at the People's Bank of China and the commission. The notice maintains China's prohibitive stance on virtual currency, reaffirming that virtual currency does not have the same legal status as fiat currency, that related business activities in China are illegal financial activities and are strictly prohibited, and that overseas entities and individuals may not illegally provide virtual currency services to domestic parties. It also brings real-world asset tokenization into the framework, defining it as the issuance and trading of tokens or token-like claims representing ownership, income rights or other interests in assets, and states that carrying out such activity in China, or providing related intermediary or information technology services, should be prohibited where it may involve illegal token issuance, unauthorized public securities issuance, illegal securities or futures business, or illegal fundraising, except for activities approved by the relevant authorities and conducted through specified financial infrastructure. For cross-border activity, the notice says domestic entities and their controlled offshore entities may not issue virtual currencies abroad without approval from the relevant authorities, and no domestic or foreign entity or individual may issue offshore stablecoins pegged to the renminbi without approval. Domestic entities that conduct offshore real-world asset tokenization in the form of foreign debt, or carry out offshore asset securitization-like or equity-like tokenization backed by ownership rights, income rights or other interests in domestic assets, will be subject to strict supervision by the National Development and Reform Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange, with approval or filing required before such business can proceed. Overseas subsidiaries and branches of domestic financial institutions that provide related services must be brought within group compliance and risk control systems and meet requirements on customer access, suitability and anti-money laundering. Intermediaries and information technology service providers supporting these offshore activities must strengthen internal controls and report or obtain approval for their business as required. The framework also sets out implementation arrangements. The People's Bank of China and the China Securities Regulatory Commission will coordinate national work mechanisms with other departments, while provincial governments will lead local prevention and disposal efforts. Authorities will combine risk monitoring with controls over fund and information flows, market registration and advertising, action against virtual currency mining and related illegal activity, and tighter supervision of domestic entities operating abroad.
China Securities Regulatory Commission2026-02-06
China Securities Regulatory Commission joins eight-agency notice reaffirming the ban on virtual currency activities and tightening oversight of real-world asset tokenization
The China Securities Regulatory Commission joined seven other authorities in issuing a revised notice that keeps virtual currency business in China classified as illegal financial activity and extends the framework to real-world asset tokenization. The notice also bars unapproved offshore issuance of virtual currencies by domestic entities, prohibits unapproved offshore issuance of renminbi-pegged stablecoins, and subjects offshore tokenization of domestic assets to approval, filing and compliance requirements.