Core Viewpoint - The recent joint announcement by seven industry associations in China highlights the illegal nature of virtual currencies and related activities, aiming to strengthen financial security and protect public assets [1][2]. Group 1: Regulatory Actions - The "Risk Warning" issued on December 5, 2025, targets illegal activities associated with virtual currencies, including Ponzi schemes and money laundering, emphasizing the need for public awareness [1][2]. - The warning identifies specific new types of virtual currencies, such as air coins, stablecoins, and real-world asset (RWA) tokens, which are linked to illegal fundraising and fraud [2][3]. - The document clarifies that virtual currencies are not issued by monetary authorities and do not have the same legal status as fiat currencies, prohibiting their circulation in China [2][3]. Group 2: Emerging Trends in Illegal Activities - There is a noted trend of criminals using new technologies and concepts to disguise illegal activities, such as presenting air coins as innovative projects [3]. - Virtual currencies are increasingly being used in diverse roles within criminal activities, serving as tools for illegal operations, means of settlement, or mere facades for scams [3]. - Criminals often operate from abroad while targeting domestic residents through online platforms, complicating regulatory enforcement [3]. Group 3: Public and Institutional Responsibilities - Industry institutions are urged to adhere strictly to regulatory requirements by not engaging in any virtual currency-related services and to report suspicious activities [6]. - Public awareness is crucial; individuals are advised to remain vigilant against exaggerated claims of high returns and to avoid engaging with unverified foreign platforms [6]. - The associations recommend that the public report any suspicious activities related to virtual currencies to regulatory authorities or law enforcement [5][6].

Core Viewpoint - The China Internet Finance Association and other financial organizations have issued a risk warning regarding illegal activities related to virtual currencies, highlighting the rapid rise in related concepts and the exploitation by criminals for illegal fundraising and scams [1][6]. Group 1: Nature of Virtual Currencies - Virtual currencies are not issued by monetary authorities and do not have the same legal status as fiat currencies, making them illegal for circulation in China [2][7]. - Air coins like π coin lack substantial technological innovation and clear commercial applications, with opaque issuance and operational mechanisms, leading to significant fraud and market manipulation issues [2][7]. - Stablecoins currently fail to meet customer identity verification and anti-money laundering requirements, posing risks of being used for money laundering and illegal fundraising [2][7]. Group 2: Illegal Activities and Regulations - Domestic institutions and individuals engaging in the exchange of fiat currency for virtual currencies or issuing and financing real-world asset tokens are involved in illegal financial activities [3][8]. - Foreign virtual currency service providers offering services to domestic entities are also considered illegal, and those providing such services will be held accountable [3][8]. - Member institutions are prohibited from participating in the issuance and trading of virtual currencies and real-world asset tokens, and must not provide any related services [9]. Group 3: Public Awareness and Education - Member units are encouraged to conduct risk awareness and educational campaigns regarding virtual currencies and real-world asset tokens to help the public discern risks and avoid illegal activities [10]. - The public is urged to be vigilant against various forms of virtual currency activities, as their prices are highly volatile and often associated with speculation and scams [5][10].