Core Viewpoint - The seven associations in China have issued a risk warning prohibiting their member units from participating in virtual currency and real-world asset token issuance and trading activities within the country, following a crackdown by 13 government departments on cryptocurrency speculation [1][2]. Group 1: Regulatory Actions - Member units are explicitly forbidden from engaging in any activities related to the issuance and trading of virtual currencies and real-world asset tokens within China [1][2]. - The associations emphasize that virtual currencies are not issued by monetary authorities and do not hold the same legal status as legal tender in China [2]. - Institutions and individuals conducting exchanges between legal currency and virtual currencies, or engaging in the issuance and financing of real-world asset tokens, are deemed to be involved in illegal financial activities [2][3]. Group 2: Risks Associated with Virtual Currencies - The risk warning highlights that virtual currencies are often used for speculative trading and illegal activities such as Ponzi schemes and fraud [4]. - Specific examples of risks include the volatility of virtual currency prices, with Bitcoin experiencing significant fluctuations, such as dropping below $85,000 and then rebounding above $90,000 within a few days [4]. - The warning also identifies "air coins" like π coin as lacking substantial technological innovation and clear commercial applications, making them susceptible to fraud and market manipulation [2]. Group 3: Compliance Requirements - Financial institutions, including banks and payment service providers, must not offer any services related to the issuance and trading of virtual currencies or real-world asset tokens [3]. - Member units are required to conduct thorough customer due diligence to identify any involvement in virtual currency transactions or money laundering risks [3]. - Internet platform companies must ensure compliance by not providing marketing or technical services for virtual currency-related activities [3].

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 Chinese Internet Finance Association and other regulatory bodies have issued a risk warning regarding illegal activities related to virtual currencies, highlighting the rise of speculative trading and fraudulent schemes under the guise of stablecoins and other tokens [1][2]. Group 1: Regulatory Actions - The warning is part of efforts to implement directives from the People's Bank of China and other financial regulatory authorities aimed at preventing risks associated with token issuance and virtual currency trading [1]. - Various associations, including the China Banking Association and the China Securities Association, have collaborated to issue this risk alert [1]. Group 2: Risks and Warnings - Virtual currencies are characterized by extreme price volatility and are often associated with speculative trading and illegal activities such as Ponzi schemes [2]. - The public is advised to enhance their risk awareness and avoid participating in activities related to virtual currencies and real-world asset tokens, as well as illegal fundraising under the guise of "mining" [2]. - Individuals are urged to report any suspicious activities related to virtual currencies to regulatory authorities and law enforcement [2].

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].

Core Viewpoint - The joint announcement by seven associations in China emphasizes the risks associated with virtual currencies and related activities, urging the public and financial institutions to remain vigilant against illegal activities and scams [1][2]. Group 1: Nature of Virtual Currencies - Virtual currencies are not issued by monetary authorities and do not hold the same legal status as fiat currencies, making them unsuitable for circulation within China [2]. - Certain virtual currencies, such as π coin, lack substantial technological innovation and clear commercial applications, leading to significant fraud and market manipulation risks [2]. - Stablecoins currently do not meet customer identification and anti-money laundering requirements, posing risks of being used for money laundering and fraudulent fundraising [2]. - The tokenization of real-world assets carries multiple risks, including false asset risks and speculative trading risks, with no approval from Chinese financial authorities for such activities [2]. Group 2: Prohibitions on Financial Institutions - Financial institutions are prohibited from engaging in activities related to the issuance and trading of virtual currencies and real-world asset tokens within China [4]. - Banks and payment institutions must not provide any form of financial services or credit support to virtual currency mining projects [4]. - Securities, fund, and futures institutions are also barred from offering services related to virtual currencies and real-world asset tokens [4]. - Internet platform companies must refrain from marketing or providing technical services for virtual currency-related activities and should ensure compliance in information dissemination [4]. Group 3: Public Awareness and Caution - The public is urged to be highly alert to various forms of virtual currency and real-world asset token activities, which are often associated with speculation and fraud [5]. - Individuals should enhance their risk awareness and avoid participating in virtual currency-related activities, including illegal fundraising under the guise of mining [5]. - It is advised to report any suspicious activities related to virtual currencies to regulatory authorities and law enforcement [5].