The People's Bank of China, in collaboration with multiple departments, has issued a notice to further prevent and address risks associated with virtual currencies and Real World Asset (RWA) tokenization. The notice reiterates that virtual currencies lack legal tender status, and related activities such as trading, exchange, issuance financing, and intermediary services are deemed illegal financial activities and are strictly prohibited. Issuing stablecoins pegged to the renminbi without approval is also banned.
RWA tokenization is similarly classified as potentially illegal financial activity within China, with a general prohibition unless specifically approved and conducted through designated financial infrastructure. The notice also emphasizes the ongoing crackdown on cryptocurrency mining and the stringent measures against fraud, money laundering, and illegal fundraising. Additionally, it enforces strict regulation on domestic entities engaging in related activities abroad.
China Intensifies Crackdown on Cryptocurrency and RWA Tokenization
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