Xinhua news agency, beijing, february 6th
Xinhua, xinhua vision, journalist wu yu, liu hui
Short video pops up the tempting ad of "invest in a stable currency to keep the money", retransmits "overseas finance shortcuts" from the family and friends, and the circle of friends sees "asset monetization can make money on the ground." i don't know. In recent years, trading activities, such as virtual currency, have changed their vests, updated their paths and continued to spread their black hands to the people “money bags”。
On 6 february, the people's bank of china and eight other departments jointly sent a letter clarifying that virtual currency-related operations in china are illegal financial activities, prohibiting the use of real-world assets (rwa) for monetization in the country, further preventing and disposing of the risks associated with virtual currency, and working together to secure the property of the people。
Clear risk attributes
Today, the virtual currency market's “overhills” pattern has become normal: in october 2025, a bitcoin with higher prices of more than $120,000 each was created, in february 2026 it fell to $70,000 each, and part of the “air coin” was more than 20 per cent per day. This period triggered multiple large-scale leverage-trading silos, with tens of billions of dollars “disappeared” overnight。
The circular on the further prevention and disposal of associated risks, such as virtual currency, issued jointly by the eight departments, emphasizes that virtual currency is not reimbursable and should not and cannot be marketed as a currency. Virtual currency-related operations are illegal financial activities. Previously, seven associations, including the china internet finance association, had issued risk tips stating that the agencies concerned could not carry out operations related to virtual currency, real-world asset monetization。
To suspend all forms of token-issue financing, to carry out special overhauls and to clean up the financing platform for the suppression of virtual currency transactions and the issuance of tokens in the country ... Since 2017, the people's bank of china, together with the relevant departments, has issued a number of policy documents on the prevention and disposal of risks associated with virtual currency transactions in china。
The policy was published and followed through. Exchange operations, information intermediation, pricing services, financing of token issues these operations, which involve virtual currency, are strictly prohibited and firmly prohibited, with tight regulations。
In recent years, currency stabilization has become the focus of global market attention. In the recent past, virtual currency prices have fluctuated considerably, and some stable currencies have collapsed and been decoupled, allowing markets to see that stable currencies are not really “stable”。
The circular provided a clear judgement on the currency of stability: a stable currency linked to a legal currency was used in circulation in a way that performed part of the functions of the legal currency. On this basis, the circular makes it clear that no unit or individual, either within or outside the country, may issue a fixed currency linked to the renminbi outside the country without the consent of the relevant authorities in accordance with the law。
At present, financial administrations such as international financial organizations and central banks are generally cautious about the development of stable currencies。
The governor of the people's bank of china, ban kung-chung, had previously indicated that the stabilization currency was still in its early stages of development and that the basic requirements for customer identification, anti-money-laundering, etc., could not be met effectively at this stage. In the next step, the people's bank of china, together with law enforcement agencies, will continue to combat the operation and speculation of virtual currency in the country and maintain the economic and financial order, while closely following and dynamically assessing the development of foreign stable currency。
All financial activities are regulated by the phenomenon
“all the world's worth can be monetized”: “rwa becomes the `leaves of god'” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What the hell is rwa monetization
For the first time, the circular provided a clear definition of rwa monetization: the conversion of ownership of assets, the right to gain, etc., into a token (circular) or other interest, bond certificate with the characteristics of a token (circular) and the carrying out of issues and transactions using encryption and distributed ledgers or similar technologies。
“at present, no company in the country has been able to complete rwa transactions, and most of the agencies are engaged in fraud under the banner `rwa'.” the chief information officer of quey-taitong securities stated that, at present, there are no institutions in the country that can register legal compliance with the rwa, nor is there a financial infrastructure for “up-chain” transactions, the security and reliability of which are not guaranteed。
The proposal of the “fifty-fifth five” plan calls for “a comprehensive strengthening of financial regulation” and the incorporation of all financial activities into regulation by law。
The circular specifies that the use of real-world asset monetization activities in the country, as well as the provision of related intermediaries, information technology services, etc., should be prohibited, with the consent of the competent authorities, in accordance with the law, with the exception of operations carried out on the basis of a specific financial infrastructure。
"look at the nature of the phenomenon. Many of the current investments, known as `rwa', are either in substance the illegal issuance of token vouchers or attempt to circumvent regulation for asset securitization.” the chief economist of sino-gold corporation, peng wenson, said that the strict fight against illegal financial activity was aimed at effectively protecting the legitimate interests of investors by strictly prohibiting all types of illegal actions that broke the financial regulatory threshold and disrupted market order。
In accordance with the circular, the relevant authorities also exercise strict control over the movement of subjects from the national territory abroad. Both in the form of external debt and on the basis of domestic interests, foreign-based asset securitization and equity-based rwa monetization operations are subject to the consent of the relevant authorities, filing, etc。
Keep it high-pressure, and join forces to fabricate financial safety nets
The prevention and disposal of associated risks, such as virtual currency, is by no means a “one-size-fits-all” of the financial system and requires multisectoral and multifaceted synergies。
In 2021, 10 sectoral communications were sent with a clear reference to “the establishment of working mechanisms to address risks associated with virtual currency transactions”. The circular further provides for “the creation of a central, integrated, territorially executed and jointly responsible long-term working mechanism” to provide effective and well-organized protection against risks and protect the property of the population in accordance with the law。
Under the arrangements, departments will strengthen risk prevention and disposal based on a division of responsibilities:
Market regulators will tighten the registration and advertising of violations containing the words or content of the “virtual currency” “stabilized currency” “rwa”; departments such as the national development reform commission will continuously overhaul the virtual currency “mining”; the internet, telecommunications and public security authorities will close and dispose of, in a timely manner and in accordance with the law, of websites, mobile applications (with small applications) and public accounts for carrying out virtual money-related operations, such as those involving fraud, money-laundering, distribution, illegal collection of funds, etc
The use of “heavy fists” in the country should be accompanied by greater protection against “inverted” risks from abroad。
The circular makes it clear that subjects within the national territory and subjects under its control outside the national territory may not issue virtual currency abroad without the consent of the authorities concerned in accordance with the law. At the same time, it was stressed that no unit or individual should travel abroad to undertake real-world asset monetization operations without the consent of the operational authorities, filing, etc。
In order to strictly regulate the conduct of real world asset monetization operations abroad on the basis of the ownership of assets in china, the right to return, etc., the csrc issued, on 6 february, the guidance on the regulation of foreign issuance of assets in support of securities in the territory, specifying that prior to carrying out such operations, enterprises in the country that control the underlying assets should file with the csrc, strictly comply with the legal and policy requirements of cross-border investment, foreign exchange management, network and data security, and that enterprises and basic assets in the country should not be subject to prohibitions that violate the law, undermine the interests of the state and the public interest。
Focused surveillance continues to upgrade with precision in targeting new situations. The experts indicated that the combined efforts of a multisectoral “finger-to-fist” would further guard against and address the associated risks, such as virtual currency, and would build a tight financial security shield to guard the “money bag” of the population。
