China’s central bank and financial regulators have issued a sweeping notice enforcing a strict, comprehensive ban on all cryptocurrency activities. The notice prohibits trading, issuance, mining, and unapproved stablecoins. It also largely bans real-world asset (RWA) tokenization unless conducted under approved financial infrastructure, placing new monitoring responsibilities on local governments and institutions.
China’s financial authorities have reinforced a total prohibition on digital asset activities. The People’s Bank of China (PBOC) and other agencies confirmed “virtual currencies such as Bitcoin, Ethereum, and Tether are not considered legal money.”
Any cryptocurrency trading, issuance, or mining is now strictly illegal according to the notice. The ban also forbids foreign businesses from providing crypto services to Chinese residents.
Real-world asset tokenization is generally prohibited as well. Such activities can only proceed if explicitly approved under designated financial infrastructure.
Provincial governments must now implement these rules locally. Financial management departments are tasked with leading inter-departmental coordination on enforcement.
Multiple local authorities must establish systems to monitor illegal crypto and RWA operations. They are instructed to increase both online and offline surveillance and share risk information.
Banks and payment service providers cannot offer services related to cryptocurrencies. Internet companies are banned from hosting online marketplaces or advertisements for such activities.
The National Development and Reform Commission (NDRC) continues to regulate digital currency mining. Existing mining operations face rigorous screening while new operations are prohibited.
Violators of the regulations face harsh penalties including fines and potential prosecution. Institutions assisting foreign crypto businesses serving Chinese citizens will also be punished.
Industry associations must enhance self-regulation and report suspicious activity. Public education campaigns will focus on raising awareness about the risks of cryptocurrencies and RWA tokenization.
