TechFlow News: On February 6, the People’s Bank of China, jointly with seven other regulatory departments, issued the “Notice on Further Preventing and Addressing Risks Related to Virtual Currencies” (Yinfa [2026] No. 42), clarifying that virtual currencies do not possess legal-tender status and that related business activities constitute illegal financial activities.
The Notice prohibits virtual currency trading and real-world asset (RWA) tokenization activities within mainland China. Domestic entities are forbidden from issuing virtual currencies or engaging in tokenization activities overseas without prior approval from relevant regulatory authorities.
Financial institutions are prohibited from providing services for such activities, and internet enterprises must not provide online platforms or promotional support. The Notice mandates enhanced risk monitoring and industry supervision, as well as stringent crackdowns on related criminal and unlawful activities. It takes effect immediately upon issuance and simultaneously repeals the relevant regulations issued in 2021.
