China's central bank, along with eight other ministries, has issued a comprehensive regulatory framework for virtual currencies and the tokenization of real-world assets (RWA). The new regulations, outlined in Document No. 42, expand the scope of regulation to include RWA and stablecoins, marking a significant shift from previous policies that focused primarily on virtual currency trading and speculation. Document No. 42, which supersedes the 924 announcement, introduces a dual-track regulatory system, enhancing coordination among multiple departments. It prohibits unauthorized issuance of RMB-linked stablecoins and outlines strict regulations for RWA activities, both domestically and overseas. The document also emphasizes the need for compliance and risk management in cross-border operations by domestic financial institutions. The new framework aims to align with international standards while addressing regulatory gaps in areas like mining and intermediary services. It provides a clearer legal basis for regulating virtual currencies and RWA, ensuring that market participants understand the government's regulatory scope and responsibilities.