China: People's Bank of China and seven state departments released notice on further preventing and handling risks related to virtual currencies

On 6 February 2026, the People's Bank of China (PBOC) and seven other state departments released the Notice on Further Preventing and Handling Risks Related to Virtual Currencies (Yinfa [2026] No. 42). The Notice clarifies that virtual currencies, including Bitcoin, Ethereum, and Tether, as well as all real-world asset (RWA) tokenisation activities, do not possess legal tender status and are prohibited from market circulation. All virtual currency business activities, such as fiat-to-crypto exchange, token issuance financing, and pricing services, are classified as illegal financial activities and are strictly prohibited. The measure also bans the overseas issuance of stablecoins pegged to the Renminbi without prior authorisation. Foreign entities are barred from providing virtual currency or RWA tokenisation services to domestic entities. Financial institutions and non-bank payment providers are prohibited from offering account opening, fund transfer, or clearing and settlement services for these businesses. Internet companies are restricted from providing online business venues, commercial displays, or marketing promotions for these activities. Additionally, market supervision departments must ensure that business registrations and advertisements do not contain terminology related to virtual assets or RWA tokenisation. The National Development and Reform Commission is tasked with regulating virtual currency mining by reviewing and dismantling existing projects and prohibiting new ones, including the domestic sale of mining machinery. Provincial-level governments are responsible for coordinating risk monitoring and enforcement within their regions. This Notice repeals the 2021 Notice of the same name and remains in effect as of its issuance date.