Key Metrics
102.23
Heat Index-
Impact LevelHigh
-
Scope LevelNational
-
Last Update2026-02-06
Key Impacts
Positive Impacts (2)
Negative Impacts (6)
Event Overview
Regulatory measures in China aim to prevent financial risks by prohibiting virtual currency-related businesses, including the tokenization of real-world assets and mining. These actions underscore the government's stance against unregulated financial activities and their potential economic instability.
Collect Records
China Prohibits Virtual Currency-Related Businesses
China has long prohibited virtual currency-related businesses. In 2013, the People's Bank of China and four other departments issued a notice stating that Bitcoin is a virtual commodity and cannot be used as a circulating currency. A further notice in 2021 reiterated that Bitcoin, Ethereum, Tether, and other stablecoins do not have legal tender status. Conducting virtual currency-related business within China is considered an illegal financial activity and is strictly prohibited. Additionally, foreign entities and individuals are also prohibited from providing any form of virtual currency services to the mainland.
China Bans Tokenization of Real-World Assets and Related Services
The People's Bank of China, along with seven other departments, has issued a notice to further prevent and address risks related to virtual currencies. The notice defines the tokenization of real-world assets as the use of cryptographic and distributed ledger technologies to convert asset ownership and rights into tokens or similar instruments for issuance and trading. Such activities, including providing related intermediary and IT services, are considered illegal financial activities. These activities include unauthorized issuance of tokens, securities, and illegal fundraising, and are thus prohibited within China. Exceptions are made for activities approved by regulatory authorities and conducted through specific financial infrastructures. Foreign entities and individuals are also banned from providing such services to Chinese entities.
China Issues Notice to Further Crackdown on Virtual Currency Mining
The People's Bank of China and seven other departments have issued a notice to further prevent and address risks related to virtual currencies, including a continued crackdown on virtual currency mining. The National Development and Reform Commission, along with other relevant agencies, will strictly control and continue the efforts to eliminate mining activities. Provincial governments are responsible for overseeing the shutdown of existing mining projects and ensuring no new projects are added. The sale and service of mining equipment within the country are also prohibited.
People's Bank of China Convenes Meeting to Address Virtual Currency Regulation
On November 28, 2025, the People's Bank of China held a meeting to address the regulation of virtual currency transactions. The meeting emphasized that virtual currencies, including stablecoins, do not have the same legal status as fiat currency, lack legal tender status, and cannot be used as a means of payment in the market. The bank stated that virtual currency-related activities are considered illegal financial activities because they fail to meet the requirements for customer identification and anti-money laundering. These activities pose risks of being used for money laundering, fraud, and unauthorized cross-border transactions.