The China Securities Regulatory Commission joined the People's Bank of China and other authorities in issuing a notice that treats virtual currency activity and unauthorized real world asset tokenization as illegal financial activity in China, while setting a tighter cross-agency framework for monitoring, prevention and enforcement. The notice confirms that virtual currencies such as Bitcoin, Ether and Tether do not have the legal status of fiat currency, strictly prohibits related onshore exchange, dealing, pricing, token issuance financing and related financial product trading, and bars overseas entities and individuals from illegally providing such services to domestic parties. It also prohibits onshore real world asset tokenization and related intermediary or technology services unless the activity has been approved by the competent authority and is conducted through specific financial market infrastructure. The measures extend to offshore structures involving domestic parties. Without approval, domestic entities and their controlled offshore entities may not issue virtual currencies abroad, and offshore issuance of renminbi-pegged stablecoins is also barred without the consent of the relevant authorities. Offshore real world asset tokenization by domestic entities, including external debt structures and asset-backed or equity-like tokenization based on domestic ownership or income rights, will be subject to strict supervision under the principle of same business, same risk, same rules, with the China Securities Regulatory Commission sharing responsibility with other agencies depending on the structure. Financial institutions and payment institutions may not provide account, transfer, settlement, custody, insurance or collateral-related services for prohibited activity, internet firms may not provide online business premises, promotion or traffic acquisition, and market regulators must block business registrations using terms such as virtual currency, stablecoin or RWA. The notice also requires continued shutdown of virtual currency mining, coordinated closure of related websites, apps and public accounts, and stronger enforcement against fraud, money laundering, illegal fundraising and other crimes linked to these activities. The notice takes effect immediately and repeals the 2021 notice on further preventing and dealing with risks from virtual currency trading and speculation.
China Securities Regulatory Commission2026-02-06
China Securities Regulatory Commission joins multi agency notice classifying unauthorized RWA tokenization as illegal and tightening virtual currency curbs
The China Securities Regulatory Commission joined a multi agency notice that classifies virtual currency activity and unauthorized real world asset tokenization as illegal financial activity in China. The measures ban most onshore services, restrict offshore activity involving domestic parties, and tighten obligations on banks, payment firms, internet platforms and other service providers. The notice applies immediately and replaces the 2021 virtual currency risk notice.