PBoC<\/a>) and seven other ministries states bluntly that \u201cvirtual currency does not have the same legal status as legal tender\u201d and that tokens such as \u201cBitcoin, Ether, Tether\u2026do not have legal compensation and shall not and cannot be used as currency in the market.\u201d All \u201cvirtual currency\u2011related business activities\u201d \u2014 including fiat\u2013crypto exchange, crypto\u2013crypto trading, market\u2011making, information intermediation, token issuance and crypto\u2011linked financial products \u2014 \u201care illegal financial activities\u201d and are to be \u201cstrictly prohibited\u201d and \u201cresolutely banned.\u201d<\/p>\nReal\u2011world asset tokenization is folded into the same risk bucket. Authorities define RWA tokenization as converting ownership or income rights into tokens for issuance and trading, and warn that such activities in China \u201cshall be prohibited\u201d unless explicitly approved on designated financial infrastructure. Offshore entities are also barred from \u201cillegally providing\u2026RWA tokenization\u2011related services\u201d to onshore users.<\/p>\n
Enforcement, mining and offshore routes<\/h2>\n
The notice hardens the multi\u2011agency framework first laid out in 2021\u2019s Yinfa No. 237, which labeled key crypto activities as illegal and banned offshore exchanges from serving mainland clients. Financial institutions and payment firms are now forbidden from opening accounts, transferring funds, settling, custoding, or insuring any virtual\u2011asset\u2011linked product. Internet platforms may not provide \u201conline business venues, commercial displays, marketing, traffic\u2011buying or paid promotion\u201d for crypto or RWA services and must help shut down relevant websites, apps and public accounts.<\/p>\n
<\/p>\n
Beijing also renews its campaign against mining, ordering provinces to \u201ccomprehensively identify and shut down existing virtual currency \u2018mining\u2019 projects\u201d and \u201cstrictly prohibit\u201d any new capacity. On offshore structuring, regulators apply a \u201csame business, same risk, same rules\u201d principle: domestic entities and the overseas vehicles they control may not issue virtual currencies or conduct RWA\u2011style securitizations based on onshore assets without prior approval, filing or registration.<\/p>\n
Market context and price action<\/h2>\n
The clampdown lands in a market where global traders continue to treat digital assets as high\u2011beta macro risk. Bitcoin (BTC) trades near $66,005, down roughly 7.9% over the last 24 hours. Ethereum (ETH) changes hands around $1,890, lower by about 11.6% on the day. Solana (SOL) sits near $77.8, off approximately 15.4% in 24\u2011hour terms.<\/p>\n
The notice takes immediate effect and simultaneously repeals the landmark 2021 circular on virtual\u2011currency speculation, signaling that China\u2019s stance has shifted from episodic crackdowns to a durable, high\u2011pressure regime designed to \u201cmaintain economic and financial order and social stability\u201d and leave no grey zone for crypto or RWA experimentation.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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