China has officially released its regulatory framework for tokenized asset securities, as announced by the People's Bank of China (PBOC) and seven other agencies on February 6, 2026. The framework, detailed in document Yin Fa [2026] No. 42, addresses the risks associated with virtual currencies and sets out rules for the offshore issuance of asset-backed tokenized securities. These securities, defined as rights tokenized via cryptography and distributed ledger technology (DLT), face a general ban on onshore issuance unless specifically approved. The framework mandates strict compliance, filing with the China Securities Regulatory Commission (CSRC), and disclosure for offshore issuance. Stablecoins are highlighted as posing foreign exchange risks due to their legal tender-like functions. Regulatory oversight is shared among the National Development and Reform Commission (NDRC), CSRC, and the State Administration of Foreign Exchange (SAFE), with unified risk control for offshore activities by domestic institutions.