On February 6, 2026, the People’s Bank of China and seven other authorities jointly issued a notice to strengthen the prevention and handling of risks associated with virtual currencies and the tokenization of real-world assets (RWA). The notice aims to safeguard financial stability, national security, and public property.

Key points include:

1. Legal Status and Prohibition
Virtual currencies such as Bitcoin and Ethereum are not legal tender and may not circulate as currency. All related exchange, trading, token issuance, and financial product activities are classified as illegal financial activities and are strictly prohibited. Unauthorized issuance of RMB-linked stablecoins is also banned. RWA tokenization conducted without regulatory approval is likewise prohibited.

2. Regulatory Coordination
A cross-departmental mechanism is established to coordinate supervision among financial regulators, cybersecurity authorities, law enforcement, courts, and local governments. Provincial governments are responsible for local implementation and risk management.

3. Risk Monitoring and Enforcement
Authorities will strengthen monitoring systems, data sharing, and early warning mechanisms. Financial institutions and technology providers are forbidden from supporting illegal virtual currency or unauthorized RWA tokenization services. Internet platforms may not promote or host related activities. Registration of business entities using related terminology is restricted, and illegal advertising will be investigated.

4. Crackdown on Mining and Crimes
Virtual currency mining continues to be strictly banned. Law enforcement agencies will intensify efforts against fraud, money laundering, illegal fundraising, pyramid schemes, and other crimes connected to virtual currencies and RWA tokenization.

5. Overseas Activities
Domestic entities are prohibited from issuing virtual currencies overseas without approval. Cross-border RWA tokenization involving domestic assets is subject to strict supervision and must comply with regulatory approval and reporting requirements.

6. Public Education and Industry Self-Regulation
Authorities and industry associations will conduct public education campaigns to raise awareness of financial risks and strengthen self-regulation within relevant sectors.

7. Legal Consequences
Entities and individuals engaging in prohibited activities will face administrative penalties or criminal liability. Investments in virtual currencies or RWA tokens that violate public policy are considered legally invalid, and investors bear their own losses.

The notice takes effect immediately and replaces the 2021 policy on virtual currency transaction risks.