Core Viewpoint - The article discusses the recent joint efforts by seven associations in China to issue a risk warning against illegal activities related to virtual currencies and real-world asset tokens, emphasizing that these currencies are not recognized as legal tender and pose significant risks [3][4][5]. Group 1: Regulatory Actions - Seven associations, including the China Internet Finance Association and the China Banking Association, have issued a risk warning prohibiting their members from participating in virtual currency and real-world asset token activities within China [3][4]. - The People's Bank of China and 13 other departments have defined stablecoins as a form of virtual currency and are committed to combating illegal financial activities related to virtual currencies [3][4]. Group 2: Risks Associated with Virtual Currencies - The warning highlights that virtual currencies, such as π coins, lack substantial technological innovation and clear commercial applications, making them susceptible to fraud and market manipulation [5][6]. - The article notes that the volatility of virtual currencies, exemplified by Bitcoin's price fluctuations, can lead to speculative trading and illegal activities, including Ponzi schemes [7]. Group 3: Prohibitions for Financial Institutions - Financial institutions, including banks and payment service providers, are prohibited from offering services related to the issuance and trading of virtual currencies and real-world asset tokens [6]. - Internet platform companies are also barred from providing marketing or technical services for virtual currency activities, ensuring compliance with regulatory requirements [6].