Core Viewpoint - The People's Bank of China and eight other departments emphasize the need to prevent and manage risks associated with virtual currencies and the tokenization of real-world assets, highlighting the implications for monetary sovereignty and the legal status of stablecoins linked to fiat currencies [1][2]. Regulatory Framework - The notification reiterates that virtual currencies do not hold the same legal status as fiat currencies, and any related business activities within China are deemed illegal [2][3]. - It specifies that no domestic or foreign entities may issue stablecoins linked to the Renminbi without proper authorization [2][3]. - The notification categorizes the tokenization of real-world assets as activities that convert ownership and income rights into tokens, which are subject to strict regulatory oversight [2][3]. Enforcement Measures - Activities related to the tokenization of real-world assets and associated intermediary services are prohibited unless authorized by relevant authorities [3][4]. - The notification mandates that any domestic entities engaging in overseas tokenization activities must comply with strict regulatory principles, ensuring that similar risks are managed under the same rules [3][5]. - It calls for enhanced management of financial, intermediary, and information technology service institutions to ensure compliance with the new regulations [4][5]. Coordination and Implementation - The notification outlines a collaborative framework between central and local authorities to effectively manage risks associated with virtual currencies and asset tokenization [5][6]. - Central departments, including the People's Bank of China and the China Securities Regulatory Commission, are tasked with establishing mechanisms to address these risks, while local governments are responsible for implementing these measures within their jurisdictions [6].

Core Viewpoint - The joint notification issued by eight Chinese regulatory bodies emphasizes that virtual currencies do not hold the same legal status as fiat currencies and that activities related to virtual currencies are illegal financial activities within China [1][2][4]. Group 1: Virtual Currency Regulation - The notification reiterates the prohibition of virtual currency activities in China, stating that they are illegal financial activities [2][4]. - It specifies that stablecoins linked to fiat currencies, particularly the Chinese yuan, cannot be issued abroad without approval from relevant authorities [4]. - The notification highlights the risks associated with virtual currencies, including cross-border transmission of risks and the potential for illegal fundraising and securities trading [4][7]. Group 2: Real-World Asset Tokenization - The notification defines real-world asset (RWA) tokenization and establishes a regulatory framework that prohibits RWA tokenization activities within China while imposing strict regulations on overseas activities [1][5]. - It emphasizes that any RWA tokenization activities must comply with the principle of "same business, same risk, same rules" and require approval from relevant regulatory bodies [5][6]. - The notification aims to combat illegal financial activities and protect national security and social stability by strictly regulating RWA tokenization [5][7]. Group 3: Enforcement and Compliance - The notification outlines the responsibilities of provincial governments in managing and controlling virtual currency mining activities, reinforcing the ban on such operations [8]. - It calls for strict enforcement against illegal financial activities related to virtual currencies and RWA tokenization, with legal consequences for violations [7][8]. - The notification encourages research into the technological foundations of virtual currencies, such as blockchain, while promoting controlled exploration of digital currency applications in cross-border payments [8].