China’s central bank and seven other ministries have issued a new notice that classifies virtually all cryptocurrency business activity as illegal financial activity and extends the crackdown to RWA tokenization. The document states that Bitcoin, Ether, Tether and similar virtual currencies do not share the legal status of legal tender, and cannot be used as currency in the market. The language is blunt.
The notice calls for such activity to be strictly prohibited and resolutely shut down, expanding liability across the service chain from trading and issuance to payments, promotion, and online distribution channels.
Crypto trading and RWA tokenization placed in the same category
Under the notice, fiat-to-crypto exchange, crypto-to-crypto trading, market-making, information intermediation, token issuance, and financial products linked to crypto are all treated as illegal financial activity. Regulators also define RWA tokenization as turning ownership rights or income rights into tokens for issuance and trading. Those activities are banned in China unless they receive explicit approval on designated financial infrastructure.
The notice also targets offshore access. Overseas entities are barred from illegally providing RWA tokenization-related services to users in mainland China, showing that enforcement is not limited to onshore issuance or trading venues.
Financial firms, payment providers and internet platforms face tighter duties
The new document hardens the multi-agency framework first laid out in the 2021 circular on virtual-currency speculation, and repeals that 2021 notice at the same time. Financial institutions and payment companies are forbidden from opening accounts, transferring funds, settling, providing custody, or offering insurance for products tied to virtual assets. Internet platforms may not offer online business venues, commercial displays, marketing, traffic acquisition, or paid promotion for crypto or RWA services, and must assist in taking down related websites, apps, and public accounts.
The notice also renews the campaign against mining, ordering local authorities to identify and shut down existing virtual-currency mining projects and to strictly ban any new capacity.
Offshore structures brought under the “same business, same risk, same rules” principle
For cross-border structuring, regulators apply a “same business, same risk, same rules” standard. Domestic entities and overseas vehicles they control may not issue virtual currencies or carry out RWA-style securitization based on onshore assets without prior approval, filing, or registration. The notice takes effect immediately, with authorities framing the move as part of maintaining economic and financial order and social stability.
Digital asset prices were lower as the notice landed
At the time of publication, the broader crypto market was under pressure. Bitcoin (BTC) traded near $66,005, down about 7.9% over 24 hours. Ethereum (ETH) changed hands around $1,890, lower by roughly 11.6% on the day. Solana (SOL) traded near $77.8, off around 15.4% in 24-hour terms.