People's Bank of China, China Securities Regulatory Commission: This notice emphasizes that conducting RWA securitization without a license is an illegal activity, maintaining the consistent policy stance on virtual currencies in recent years

February 6 Officials from China’s central bank and securities regulator have explained the context behind the newly issued **Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Matters** (hereafter the “Notice”): it was created by revising the original document, building on lessons from past work and in response to emerging risk scenarios. Additionally, the Notice upholds the policy stance of recent years, reiterating key rules: - Virtual currencies do not hold the same legal status as fiat currencies. - Engaging in virtual currency-related business activities within China constitutes illegal financial activity. - Overseas entities and individuals are prohibited from illegally providing virtual currency-related services to domestic entities in any form. To address the rapid growth of real-world asset tokenization in recent years, the Notice emphasizes prohibitions on: - Conducting real-world asset tokenization activities within China. - Providing related intermediary or information technology services for such activities. These actions may involve illegal financial offenses (e.g., illegal token issuance, unauthorized public securities offerings, illegal securities/futures business operations, or illegal fundraising). The only exceptions are activities approved by the relevant competent regulatory authority in accordance with laws and regulations, and conducted through designated financial infrastructure. Overseas entities and individuals are also barred from illegally providing real-world asset tokenization-related services to domestic entities in any form.