The People's Bank of China issued a notice on preventing risks associated with virtual currencies

The People's Bank of China and eight other departments issued a notice on further preventing and addressing risks related to virtual currencies (Yin Fa [2026] No. 42), clarifying that virtual currencies do not have the status of legal tender, and related business activities are considered illegal financial activities.

The notice prohibits the domestic conduct of virtual currency trading and the tokenization of real-world assets (RWA). Without approval from relevant departments, domestic entities are not allowed to issue virtual currencies or engage in tokenization activities overseas.

Financial institutions are prohibited from providing services for related activities, and internet companies are not allowed to provide online venues or promotional activities. The notice requires strengthening risk monitoring and industry supervision, and severely cracking down on related illegal activities. This notice shall take effect from the date of issuance and simultaneously abolishes relevant provisions from 2021.