Core Viewpoint - The People's Bank of China and other regulatory bodies have issued a notification to further prevent and address risks associated with virtual currencies and the tokenization of real-world assets, declaring such activities illegal within the country [1][2][3]. Regulatory Measures - The notification outlines requirements for risk monitoring, intermediary institution regulation, internet content management, business entity registration, advertising management, and the crackdown on illegal activities related to virtual currency mining [1][4]. - It emphasizes that any virtual currency-related business activities within the country are illegal and that foreign entities are prohibited from providing such services to domestic subjects [2][3]. Tokenization of Real-World Assets - The notification prohibits the tokenization of real-world assets and related intermediary services unless approved by relevant authorities, categorizing unauthorized activities as illegal financial operations [4]. - It also stresses that foreign entities must not provide services related to the tokenization of real-world assets to domestic subjects [4]. Cross-Border Risks - The notification highlights the cross-border nature of risks associated with virtual currencies, urging strict regulations on domestic entities and their overseas counterparts regarding the issuance of virtual currencies [3]. - It specifically mentions that stablecoins linked to fiat currencies could undermine monetary sovereignty and must not be issued without proper authorization [3]. Public Safety and Awareness - Experts have noted an increase in illegal activities disguised as virtual currency and RWA operations, which threaten public financial safety and disrupt economic order [5]. - The notification calls for enhanced inter-departmental collaboration and public education to improve risk awareness and detection capabilities among the public [5].