The People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) published a Q&A on a multi-agency Notice on further preventing and disposing of virtual currency and other related risks. The Notice reiterates China’s prohibition on virtual currency-related business activities and adds measures aimed at emerging risks linked to tokenisation of virtual currencies and real-world assets, including cross-border activity. For virtual currencies, the Notice restates that they do not have the same legal status as legal tender and that providing virtual currency-related business services in China is an illegal financial activity, including where overseas entities or individuals provide services to domestic entities. It also restricts cross-border issuance by stating that domestic entities and overseas entities they control must not issue virtual currencies overseas without the consent of relevant departments, and that no unit or individual at home or abroad may issue RMB-pegged stablecoins overseas without such consent. For real-world asset tokenization, the Notice defines it as using cryptography and distributed ledger or similar technology to convert asset ownership and income rights into tokens or token-like certificates for issuance and trading, and prohibits carrying out such activities in China where they involve illegal financial activities such as unauthorized public issuance of securities, illegal securities and futures business, or illegal fundraising, including provision of related intermediary and information technology services. Domestic entities carrying out real-world asset tokenization overseas based on domestic rights and interests are subject to strict supervision by the National Development and Reform Commission, CSRC, the State Administration of Foreign Exchange and other relevant departments, and may not proceed without required consent and filings; overseas subsidiaries and branches of domestic financial institutions providing related services must apply group compliance controls and implement customer access, appropriateness and anti-money laundering requirements.
China Securities Regulatory Commission 2026-02-06
People’s Bank of China and China Securities Regulatory Commission explain joint notice reinforcing the ban on virtual currency business and tightening oversight of real-world asset tokenization
The People's Bank of China and the China Securities Regulatory Commission issued a Q&A on a Notice reinforcing China's ban on virtual currency-related activities and addressing risks from tokenization of virtual currencies and real-world assets, including cross-border activities. The Notice prohibits unauthorized issuance of virtual currencies and asset tokenization, requiring strict supervision and consent from relevant departments for domestic and overseas activities.