The People’s Bank of China (PBOC), together with eight government agencies, approved a new set of measures aimed at preventing risks associated with digital currencies and the tokenization of real-world assets (RWA), classifying such activities as illegal financial operations.
The PBOC issued new restrictions for the crypto market. The document officially reaffirms the ban on the use of cryptocurrencies in circulation and emphasizes that cryptocurrencies, including stablecoins, don’t have the status of legal tender in the country.
According to the document, issued with the participation of the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange, the following activities are subject to an unconditional ban and liquidation within the PRC:
- any exchange of fiat currencies for crypto-assets;
- trading in virtual currencies;
- token issuance;
- intermediary services;
- clearing and pricing;
- provision of infrastructure for digital asset operations.
The document places particular emphasis on the tokenization of RWAs. The use of distributed ledgers and cryptographic technologies for issuing and circulating tokens representing ownership rights or income from real assets is classified as potentially illegal securities issuance and a form of unlawful fundraising. Such activities are prohibited, except where they are explicitly approved by relevant authorities and carried out on licensed financial infrastructure. Foreign companies and individuals are prohibited from providing such services to Chinese residents.
The document also introduces a comprehensive interagency oversight mechanism, under which monitoring will be strengthened for:
- transactions;
- online platforms;
- payment flows;
- advertising activities.
It is emphasized that the regulator reserves the right to initiate the shutdown of websites, mobile apps, and public accounts related to cryptocurrencies and RWAs.
Financial organizations and payment institutions are prohibited from opening accounts, conducting settlements, providing custodial services, or issuing products related to virtual currencies and unauthorized tokenization. Internet platforms are stripped of the right to provide advertising and marketing services to such projects. In addition, the regulator banned the use of the terms “virtual currency,” “crypto-asset,” “stablecoin,” “RWA,” and similar wording in company names and declared business activities.
The document separately reaffirms the policy of a complete ban on crypto mining. All existing projects are subject to closure, the launch of new capacity is prohibited, and equipment manufacturers are banned from selling crypto mining devices on the domestic market.
The document also introduces strict restrictions on cross-border activities. Chinese companies and their foreign-controlled entities are prohibited, without regulatory approval, from issuing digital currencies abroad or tokenizing assets based on rights to assets located within the PRC. All such schemes will be supervised under the principle of “same activity, same risks, same rules.”
The new regime enters into force upon publication.
An interagency meeting dedicated to strengthening oversight of the virtual asset market in the PRC was held by the People’s Bank of China at the end of 2025.
