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This Week in Review | Trump Signs Executive Order on Cryptocurrency; Binance Labs Renamed to Family Office
BlockBeats will curate key industry news from the past week (1/20-1/26) in this article and recommend in-depth articles to help readers better understand the market and industry trends.
Important News Recap
New U.S. President Trump Signs Cryptocurrency Executive Order: Outlines Regulatory Framework and Explores National Crypto Reserve
U.S. President Donald Trump officially signed the "Enhancing the Leadership of the United States in Digital Financial Technologies" crypto executive order on January 24. This executive action not only signifies the U.S. government's focus on the digital asset industry but also provides a clear policy framework for its future development. The executive order establishes the so-called President's Digital Asset Market Working Group, chaired by AI and cryptocurrency special advisor David Sacks, with other senior government members including the chairs of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The key contents of this executive order include:
· Clearly defining the regulatory framework for the crypto industry to responsibly support industry growth
· Exploring the establishment of a national digital asset reserve
· Prohibiting government agencies from issuing CBDCs
· Repealing Statement of Accounting Bulletin 121 that hinders institutions from holding cryptocurrency
Related Reading: "What Does Trump's First Cryptocurrency Executive Order Include?"
Trump Coin Effect: Several Celebrities, Including His Wife, Launch Tokens to Harvest Market Liquidity
Prior to his inauguration last weekend, following the issuance of his own namesake token, former President Trump's wife Melania also released her own namesake meme coin, MELANIA. However, replicating the wealth effect has proven to be difficult, as shortly after the token's launch, its market value briefly touched $100 billion before plummeting. Influenced by the presidential coin effect, several celebrities have successively launched their own tokens this week, only to exit post-"harvest," significantly impacting market liquidity. Related Reading: "Two Days Before Taking Office, Trump and His Wife Allegedly Pocketed $65 Billion from the Crypto World," "Time Magazine: Trump Coin - Has the Pandora's Box Been Opened?"
Trump Pardons Silk Road Founder Ross William After Taking Office, Who Was Previously Sentenced to Life Imprisonment Without Parole
On January 22, Trump tweeted that he had pardoned Silk Road founder Ross William Ulbricht and informed his mother. Ulbricht had previously been indicted in 2014 on charges of money laundering, computer intrusion, and conspiracy to traffic narcotics. In 2015, Ross was sentenced to double life imprisonment without the possibility of parole for 40 years. Ross William Ulbricht had been in prison for over 11 years before this pardon. Related reading: "On his first day in office, Trump released an 11-year veteran of the crypto community."
US Government Efficiency Department "DOGE" Website Goes Live, Showcasing Dogecoin-Themed Logo and Then Gets Removed
On January 21, the US Government Efficiency Department "DOGE" (Department of Government Efficiency) website went live, displaying the Dogecoin logo. On January 25, according to the official account, the logo previously containing Shiba Inu elements has now been removed.
Eric Trump Confirms US Domestic Crypto Projects Will Enjoy Zero Capital Gains Tax
On January 26, according to The Street, Eric Trump, son of Trump, recently confirmed that US domestic crypto projects such as XRP and HBAR will enjoy zero capital gains tax in the future, while non-US projects will face a 30% tax rate. Meanwhile, Senator Ted Cruz plans to challenge a controversial IRS rule using the "Congressional Review Act," which requires DeFi brokers to report user data and transaction revenue. Cruz believes that this rule hinders innovation, violates privacy, and increases the compliance burden on decentralized platforms.
Binance Labs Announces Rebranding to YZi Labs, Transforming into a Large Family Office
On January 23, Binance Labs announced a rebranding to YZi Labs. Ella Zhang has returned to YZi Labs as the head. Ella Zhang and CZ co-founded Binance Labs in 2018, with her serving as the inaugural head. In an interview, Ella Zhang stated that YZi Labs is a variation of the Binance co-founder's name and has now become a "pure family office investment tool." A spokesperson for YZi Labs noted that the company does not have a formal headquarters as its employees operate in a remote work setting.
Short Video Platform Vine Co-Founder Launches Token, Market Cap Hits $2 Billion in 4 Hours
On the morning of January 23, another rug pull emerged on the Solana blockchain – VINE. The token shares the same name as the short video platform Vine, which Twitter announced the closure of in 2016. In just 1 hour after launch, VINE's market cap exceeded $1 billion. As Vine's co-founder Rus Yusupov claimed the dev role in a post, the price of VINE skyrocketed, reaching a peak market cap of $2.4 billion. However, Vine's other co-founder Dom Hofmann stated in a post that the token has no relation to him, and he will not participate in meme coins.
It is reported that Vine is a short video platform similar to TikTok, allowing users to create up to 10-second video clips and share them on social networks. The platform was launched in June 2012 by its three co-founders Dom Hofmann, Rus Yusupov, and Colin Kroll (deceased); in October 2012, it was acquired by Twitter (now known as X), but Twitter announced the closure of Vine on October 27, 2016, as part of its restructuring plan.
On January 26, community developer Chris Park from X platform sought community feedback on "whether to integrate Vine into the X platform." Chris stated, "The dev team is very excited about it internally, but this is no small matter. Externally, we need to hear feedback from users. On a scale of 1 to 10, how valuable do you think this will be for X and our platform?" According to Chris Park's profile, he is part of the X development team. Chris Park is passionate about driving platform development, believing that high-quality users and content are key, and his tweets often share about X's new features and future plans, supporting the creator ecosystem. Related Read: "Founder Launches Token, Market Cap Hits $2 Billion, Musk's Short Video Platform Vine Makes a Comeback"
Ethereum Community Ecosystem Expresses Dissatisfaction with Foundation's Inaction, Collective Voice Calls for Swift Reform
As disappointment over ETH's weak performance in this cycle gradually accumulated and finally erupted, the calls for reforming the EF have grown louder. This week, the entire Ethereum community has been discussing the EF's leadership structure, personnel composition, operating model, and financial plans. Current EF Executive Director Aya Miyaguchi has been criticized by the community, and under heavy pressure, Vitalik had to publicly state his intention to "make a major change in the EF leadership structure." However, Vitalik also mentioned that only he can decide on the new EF leadership team, and continued community pressure will create a highly detrimental environment for attracting top talent. Related Read: "Leading Project Faces Collective 'Palace Intrigue', Community Anger Sweeps Ethereum Foundation Once Again"
4 SOL Spot ETFs Face First Decision Day on January 25, with Results Expected Next Week
On January 25, according to Bloomberg Terminal data, 4 institutions including VanEck, 21Shares, Canary, and Bitwise launched Solana Spot ETFs welcomed their first final deadline on January 25. This week, due to the busy schedule of the new and outgoing SEC leaders and members, the results may not be announced before Friday, and the SEC typically does not announce such decisions on Saturdays and Sundays. Therefore, the SEC may announce the specific results next week.
Solana On-Chain DEX Jupiter Exchange Acquires Majority Stake in Moonshot and Announces Multiple Developments
On January 26, after the open airdrop claim by Jupiter, several new developments were announced, causing a rise in JUP. Specific developments include:
- Launching the full-chain network Jupnet to aggregate all on-chain liquidity
- Launching the new community website jup.com, now open for user registration
- Collaborating with elizaOS to launch a $10 million MAGIC FUND to support AI OS developers
- Acquiring the Solana-based investment portfolio tracker Sonarwatch
- Releasing a new version of the trading interface and new features in Beta
- Acquiring a majority stake in Moonshot
Top Articles of the Week
"Trump's Coin Makes Chinese Investors Earn Billions, U.S. Crypto Community Splits"
Shortly before taking office, Trump launched his own cryptocurrency $TRUMP and quickly attracted global investors through a token collaboration with family member Melania. Although this action sparked widespread controversy within the crypto community and political circles, especially regarding the exploitation of the presidential position by the Trump family for personal gain, the short-term market volatility and massive profits generated still drew attention. Many Asian investors received substantial returns in the initial issuance, while U.S. retail investors were unable to enter in time due to operational delays. Trump's cryptocurrency behavior not only raised questions about his moral standards but also triggered internal division and opposition within the crypto community.
"Two Days Before Taking Office, Trump and His Wife Rake in $650 Billion from the Coin Circle"
Following Trump, his wife Melania also launched her own namesake meme coin "MELANIA," which has gained significant market heat with a trading volume surpassing 26 billion dollars and a market cap exceeding 100 billion dollars. Compared to Trump's namesake coin "TRUMP," MELANIA has different token distribution and unlocking rules, with the team's share only requiring a 30-day lockup period and a faster unlocking speed. Meanwhile, the Trump family's DeFi project WLFI completed its public sale, raising 3 billion dollars, and began purchasing ETH, leading to further market volatility. The community has engaged in various discussions regarding this cultural and tokenization phenomenon, with some considering meme coins mere speculative behavior, while others view them as a new form of IP monetization.
"U.S. Presidential Coin: An $800 Billion Crypto User Education Event"
Trump's "Presidential Coin" TRUMP saw a rapid surge in market cap post-launch, becoming a significant event in the crypto industry. This event highlighted the accelerating trend in the crypto space shifting from centralized exchanges (CEX) to decentralized exchanges (DEX). TRUMP's eruption also proved that in the crypto market, speed in discovery and decision-making is key to reaping benefits. Participants' awareness and positions determine the ultimate gains, while tools influence the speed of asset flow. Trump's coin issuance not only attracted a lot of attention but also propelled meme coins into a relatively equitable asset issuance method, profoundly impacting the future development of the crypto market.
"On His First Day in Office, Trump Granted Clemency to an 11-Year Crypto Inmate"
Trump has manipulated public sentiment through political means, and recently, he has brought substantial profits to himself and the interest groups behind him through coin issuance, despite facing criticism from the crypto industry. To appease dissatisfaction, Trump announced the pardon of Ross Ulbricht, the founder of the "Silk Road," fulfilling a campaign promise. This act, met with widespread support in the crypto community, came after Ross, arrested for operating an online darknet trading platform, was sentenced to double life imprisonment with no parole. Trump's pardon action was seen as a significant response to the crypto industry and provided a final opportunity to fight for Ross's freedom.
This article analyzes Donald Trump's motivation for entering the cryptocurrency space, revealing the nature of his profit-taking through $TRUMP. The author criticizes the hype-driven nature of this coin, pointing out that Trump is more focused on short-term gains and self-promotion, overlooking Bitcoin's core value. The author calls for attention to the decentralization and practical use cases of cryptocurrency, rather than speculative hype.
"If We Start Over, How to Capture TRUMP's Early Buy Signal?"
Through effective on-chain monitoring tools, investors can seize opportunities in the Meme coin market. From monitoring platforms like Moonshot to capture market breakouts, to using tools like Zerion, GMGN to track smart money's transaction dynamics, and to sentiment analysis on social media, a comprehensive monitoring strategy helps users make timely decisions during key moments such as token launches and surging trading volumes.
"Beginner's Guide | How to Create an On-Chain Wallet, Withdraw, and Buy Coins?"
Recently, the activity level in the Solana ecosystem has significantly increased, with decentralized exchange trading volumes hitting new highs, especially the Trump family token seeing a substantial surge in trading volume. To participate in these trades, users need to create an on-chain wallet and move assets from centralized exchanges to on-chain wallets. For beginners, Phantom and OKX Web3 wallet are common choices. In addition, through cross-chain operations, users can bypass withdrawal suspensions to ensure timely participation in popular token purchases. For trading popular on-chain coins, Raydium is the primary trading platform in the Solana ecosystem, while GMGN provides users with more professional trading and data analysis tools to help investors improve their trading success rate.
"Vitalik Fires the First Shot of 'Reform,' Where Is the Ethereum Foundation Heading?"
Ethereum founder Vitalik Buterin announced plans to reform the Ethereum Foundation's (EF) leadership structure, aiming to enhance technical capabilities, strengthen communication, bring in new blood, and support decentralization and privacy tech. However, the main issues facing the EF still include a lack of transparency, insufficient valid work proof, and unclear organizational structure. Additionally, the EF's ETH sales have negatively impacted the market, reducing community trust. Nevertheless, Vitalik emphasizes that the reform goal does not involve ideological shifts or political lobbying; the focus is on technical development and supporting the expansion of decentralized applications. Currently, EF's reform faces significant internal and external pressures, especially regarding communication and trust issues with the community.
"Head Projects Jointly 'Palace Fight,' Community Wrath Sweeps Ethereum Foundation Again"
The Ethereum Foundation (EF) has recently sparked widespread controversy within the community, mainly due to issues related to its leadership structure, financial management, and strategic direction. The founders and executives of multiple Ethereum ecosystem projects have criticized the EF, believing that it has serious problems in fund utilization, personnel management, and strategic decision-making. Some suggestions include requesting Layer 2 projects to repurchase ETH, focusing on Layer 1 scaling, reducing expenses, and streamlining staff. At the same time, the EF has been accused of failing to effectively stake the ETH in its possession and choosing to sell ETH at sensitive moments, further intensifying the community's dissatisfaction.
"Under Public Pressure, Vitalik Posts Calling L2: Turn Around and Support ETH"
The performance of Ethereum in the current cycle has sparked community discontent, especially criticism of the Ethereum Foundation (EF) for not promptly addressing issues. Several prominent project founders have raised their concerns and suggestions, including requesting Layer 2 (L2) to increase demand through ETH repurchases, and abandoning the L2 strategy. Ethereum co-founder Vitalik Buterin responded to these doubts, proposing a series of scaling and improvement plans, particularly by increasing Blob space, enhancing L2 security, and interoperability to drive Ethereum's development. Buterin emphasized that Ethereum's future will depend on the collaborative efforts of technology and the community, especially in terms of the economics of ETH and the construction of the Layer 2 ecosystem.
"Core Member Departs to Establish 'Clone EF'; How Long Can the Ethereum Foundation Endure?"
Ethereum's core developer Eric Conner announced his departure from the Ethereum Foundation (EF), mainly due to EF's lack of transparency and disconnection from the community. He criticized the Foundation for failing to reform effectively and hindering ecosystem innovation. Eric's departure reflects the deepening divisions within the EF, further fueling community discontent. At this time, the Second Foundation quietly emerged within the community, triggering more discussions about the EF's future direction. Community members have proposed various reform suggestions for the EF, believing that the Foundation needs to make choices to adapt to the rapid development of the Ethereum ecosystem.
"Nearly $200 Million Massive Debt, Will THORChain Default?"
Thorchain is facing a serious debt issue. Despite the risks, the protocol still has tremendous business potential, generating over $30 million in fees annually. Measures such as freezing borrowing and depositor positions, deleveraging, and tokenizing debt can help rescue the protocol and maintain its core liquidity. Additionally, establishing an Economic Design Council to ensure the protocol adheres to fundamental principles, improves capital efficiency, and prevents falling back into a debt crisis.
"Founder Mints $200 Million, Musk's Vine Set for Comeback"
The VINE token on the Solana chain has recently gained popularity, with a market capitalization surpassing $200 million. The token shares the same name as the defunct short video platform Vine and is issued by Vine's founder, Rus Yusupov. Vine was launched in 2012 and shut down by Twitter in 2016. Musk has mentioned reviving Vine multiple times and indicated a reconsideration in 2024. Although the VINE token is not directly linked to the Vine platform, it quickly garnered attention due to Yusupov's involvement and market hype. Yusupov has pledged to donate all profits to X and announced that the VINE token will be locked until April 20, further fueling market enthusiasm.
"What Does Trump's First Crypto Executive Order Include?"
Trump's signed crypto executive order provides a clear policy framework for the U.S. digital asset industry, supporting innovation and responsible development. Key points include protecting crypto rights, banning CBDCs, endorsing USD stablecoins, and proposing a new regulatory framework. The order requires agencies to review existing rules and submit regulatory and legislative proposals within 180 days. Furthermore, the established Digital Asset Market Working Group will drive stablecoin development and assess the possibility of digital asset reserves. This move is expected to boost investor confidence, strengthen the USD's position, and potentially trigger a trend of global regulatory cooperation.
"Who Made Millions with TRUMP? A Look at Profitable KOLs"
The TRUMP Meme Coin released by Trump has sparked widespread attention, driving up the heat of the cryptocurrency market and traditional media discussions. Some traders even celebrated significant profits. Different trading strategies and risk management have led some to miss out on huge profits, while some lucky traders have made millions in gains through precise entry points. The TRUMP coin craze has not only accelerated the development of the Solana ecosystem but also had an impact on the ETH market, causing many ETH holders to shift their investments to Solana. Overall, TRUMP, as a meme coin combining politics and entertainment, may herald the arrival of a new cycle in the cryptocurrency market.
Despite Warren Buffett's long-standing negative stance on cryptocurrency, Berkshire Hathaway has invested in the Brazilian digital bank Nu Holdings, which has launched a cryptocurrency platform supporting the trading of Bitcoin, Ethereum, and other coins. Berkshire has been investing in Nu since 2021 and increased its stake to 0.4% in the third quarter of 2024. Nu's stock has performed strongly, with a year-to-date gain of 34%. While Buffett has expressed disinterest in cryptocurrency, his company is benefitting from the sector, demonstrating an adjustment in investment strategy.
"Injecting 50,000 ETH, Ethereum Foundation Makes First Substantive Entry into DeFi"
Facing community discontent and competitive pressure, the Ethereum Foundation has decided to allocate 50,000 ETH to support the Ethereum DeFi ecosystem and undergo a leadership overhaul. Previously criticized for frequent small-scale ETH sales, opaque fund management, and poor communication with the community, the Foundation aims to optimize fund management, enhance transparency, and build community trust by participating in DeFi. This move not only provides liquidity support for Ethereum DeFi projects but may also help the Foundation explore a more sustainable fund management model to drive long-term ecosystem growth.
"'Trump Trading' Continues, an Overview of Trump's Crypto Landscape"
Trump's relationship with cryptocurrency is growing closer, with multiple tokens and projects related to him gaining attention. The market value of the $TRUMP token has surpassed $14 billion, ranking in the top 20, making the connection between the cryptocurrency market and Trump even stronger. Additionally, Trump's family members and team have interacted with various cryptocurrency ecosystems, including $SOL, $DOGE, and the Solana ecosystem. Trump holds a positive attitude towards American-created cryptocurrency and intends to pause the SEC's cryptocurrency lawsuits. Furthermore, the celebrity coin craze, venture capital layouts, and interactions with the SEC have all become important topics in the cryptocurrency market.
"Full Text of Trump's Inaugural Speech: The American Dream Will Return"
In his first speech after the inauguration, Trump emphasized that America will regain its greatness and strength, proposing a series of policy reforms. He pledged to revitalize the American economy, crack down on illegal immigration and crime, restore American border security, and address inflation by increasing energy production. At the same time, he promised to strengthen manufacturing, reform the trade system, restore constitutional governance, prioritize freedom of speech, and national unity. He also stated that he would rebuild international influence and ensure that America regains respect globally.
After Trump's coin issuance, the blockchain frenzy continued, and tech giants have also joined the coin issuance ranks. Recently, the widow of the late legendary figure John McAfee released the $Ainti token, claiming to resurrect McAfee's legacy through AI; and Vine's co-founder Rus Yusupov released the $Vine Memecoin, which garnered significant attention. Vine, known for its short video format, was once a pioneer in short video platforms. Although it closed in 2016, it has now regained popularity through tokens. The combination of tech companies, cultural heritage, and Web3.0 could drive more historical internet companies to revive through coin issuance, triggering a new wave of market frenzy.
"Time Magazine: Trump's Coin Issuance, Has the 'Pandora's Box' Been Opened?"
Trump's launch of the TRUMP token has sparked huge attention and a trading frenzy in the cryptocurrency market. Although essentially a type of "meme coin" lacking intrinsic value, it has attracted a large number of supporters and investors. However, this move has also faced widespread criticism, with some believing it is mainly aimed at hype and fundraising profits. Since the Trump team controls most of the token supply, it may have a significant impact on market prices. Furthermore, critics point out that this behavior could lead to conflicts of interest and national security issues, especially when external forces seek to influence Trump's policies by purchasing these tokens.
"Gemini's E People, the Origin of Trump's Outrageous Maneuver"
Donald Trump, as the newly elected President of the United States, surprisingly issued a cryptocurrency called TRUMP Coin himself, just two days before taking office. It quickly made its way to a top-tier trading platform, with a trading volume exceeding 10 billion USD within 24 hours. This move shocked the crypto community, but considering it was done by Trump, a Gemini known for his narcissistic personality, it seemed somewhat logical. Being a Gemini, he is known for his adaptability and unconventional thinking, with his narcissistic nature driving him to seek attention and recognition, often displaying dramatic behavior. Additionally, Trump is widely believed to have an MBTI personality type of ENTJ, reflecting his strong leadership desire, unorthodox behavior, a profound understanding of power dynamics, and a strong need for control.
Lily Liu from the Solana Foundation believes that in 2024, the Solana ecosystem saw significant growth across various metrics, especially in terms of transaction volume, user base, and capital inflow. Solana aims to become a global emerging financial infrastructure, not limited to specific applications like Memecoin. She emphasizes that Solana's key asset is its people and that they will continue to drive blockchain technology innovation at the core level, aiming to build a comprehensive economic system at the application layer. Lily also notes that Solana will focus on interdisciplinary development, attracting developers and talent from diverse backgrounds. Moreover, Solana remains confident in the future of the crypto industry, expecting that under the new U.S. government's regulation, blockchain technology will receive more support, propelling the global crypto space forward.
This article explores the impact of the financial populist politicization, likening it to a binary black hole system, showcasing the distortions and chaos in society. Using cryptocurrency traders as an example, it highlights that success stems from continuous effort and self-awareness. It points out that technological and societal changes are propelling the formation of a new order, where future leaders will be innovators who can transcend East-West boundaries, navigate global thinking, and the populist game.
The Nasdaq has filed the 19b-4 form for a Litecoin spot ETF with Canary Funds, marking the official entry of the application into the 240-day review period. During this process, the Securities and Exchange Commission (SEC) will decide whether to approve the application. As Litecoin, a fork of Bitcoin, is not considered a security, it has an advantage in approval. With the incoming Trump administration, the market is eagerly anticipating the approval of altcoin ETFs, especially regarding the progress of Litecoin, Solana, and XRP. It is expected that if multiple altcoin ETFs are approved, they will attract a significant influx of funds.
The interview took place in 2021, marking the first public statement by Silk Road founder Ross Ulbricht since the website was shut down. He reflected on the original intention of creating the Silk Road, expressed his belief in freedom and privacy, and deeply apologized for the consequences that followed. Ross described his painful experiences in prison and reaffirmed his strong hope for the future of Bitcoin in the closing of the interview. This interview is not only his personal outcry but also a call for social justice and human dignity.
"In 2024, Base's Seven Breakthroughs"
In 2024, Base emerged in the blockchain ecosystem and gradually established itself as the largest L2 on Ethereum through seven breakthrough events. Initially attracting a large number of users through friend.tech, although facing setbacks later, Base did not stop there. Farcaster and several popular tokens such as Aero, Brett, further drove ecosystem development. Especially in August 2024, Base surpassed Arbitrum to become Ethereum's largest L2 and launched cbBTC, successfully attracting a significant influx of funds. With the advent of the AI Agent wave, Base is on par with Solana, demonstrating strong competitiveness. This series of breakthroughs marks the Base ecosystem's transition from emerging to competing with Solana, becoming a significant force in the crypto industry.
"The Strongest Stress Test in History: Did Solana Really Make It Through?"
The Trump and Melania Coining Event triggered a huge trading frenzy in the Crypto market, and the Solana network underwent the largest stress test in history. Within a short period, a large amount of funds and users flowed in, causing the Solana network and its related infrastructure to endure immense traffic pressure, leading to transaction congestion and failures. However, unlike in the past, this time Solana's performance was met with more understanding and tolerance. Trading volumes on multiple platforms reached historic highs, and Solana's performance proved that it can still operate under extreme loads, attracting more attention. Despite facing a short-term burden, the Solana ecosystem continues to innovate, demonstrating strong future potential.
"Multicoin's Latest Investment Thesis: Solana Aiming at the Internet Capital Market"
Since 2018, Multicoin Capital has been consistently investing in Solana and believes it will become a leading public chain supporting the global Internet capital market. Solana's core strengths lie in its low fees, high performance, atomic composability, and decentralization, enabling it to compete with the traditional financial system in the payment and financial services field. Although its market capitalization has surpassed $100 billion, Solana is striving to further expand the scale of its ecosystem by improving payment processes, reducing user fees, and increasing market efficiency. Solana's decentralized structure and innovative technology allow it to stand out in the global financial market, providing users with lower fees, higher capital efficiency, and greater asset liquidity.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with 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 China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with 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 China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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