The China Securities Regulatory Commission, together with the People’s Bank of China and other central authorities, issued a notice to further prevent and address risks linked to virtual currencies and real-world asset tokenization, reaffirming that virtual currency-related business activities constitute illegal financial activities in China and setting tighter controls over tokenization structures and service provision. The notice also restricts issuance of RMB-pegged stablecoins overseas without approval, strengthens cross-department monitoring and enforcement, and applies immediate effect. The notice defines real-world asset tokenization as converting ownership or income rights into tokens or token-like certificates using cryptography and distributed ledger or similar technologies, and prohibits conducting such activities in China where they involve illegal token ticket sales, unauthorized public securities issuance, illegal securities and futures business, or illegal fundraising, as well as providing related intermediary or information technology services, subject to a carve-out for approved activities that rely on specific financial infrastructure. Financial institutions, including non-bank payment institutions, are prohibited from providing account, transfer, clearing and settlement and other services for virtual currency-related business, from issuing or selling related products, and from treating virtual currencies and related products as collateral, while internet platforms are barred from providing online venues, marketing or paid traffic for related activity and may face shutdown of websites, apps and public accounts used for such business. The notice further tightens governance of overseas activity by domestic entities, including prohibiting issuance of virtual currency overseas without relevant consent and subjecting overseas real-world asset tokenization based on domestic rights and interests to supervision and approval or filing requirements, and it provides for administrative and criminal liabilities, including that certain related investments may be deemed invalid civil acts with losses borne by investors. The notice takes effect on promulgation and simultaneously repeals the 2021 multi-agency notice on preventing and dealing with speculation in virtual currency transactions.
China Securities Regulatory Commission 2026-02-06
China Securities Regulatory Commission joins multi-agency move barring RMB-pegged stablecoins and tightening controls on virtual currency and RWA tokenization
The China Securities Regulatory Commission, with the People’s Bank of China and others, issued a notice reinforcing that virtual currency-related activities are illegal in China and imposing stricter controls on tokenization and RMB-pegged stablecoins. Effective immediately, it prohibits unauthorized tokenization, restricts financial institutions from engaging with virtual currencies, and tightens governance on overseas activities by domestic entities, while repealing the 2021 notice on virtual currency speculation.