On 6 February 2026, the People's Bank of China, together with another government agencies, issued a fresh announcement (Notice No 42-2026) on the usage of cryptocurrency (called ‘virtual currencies’) and risk-weighted assets (RWA).
The fresh announcement reiterates the key prohibitions introduced in 2021 by the erstwhile People's Bank of China announcement (announcement No 237-2021), but discusses in more item the allocation of powers between government agencies to prevent illegal activities, supply services to Chinese residents by abroad organisations and issue stablecoins.
Key provisions of the fresh notice:
The cryptovats do not have legal tender status. No cryptocurrency shall have the legal value of a means of payment and may not be utilized as money in marketplace transactions.
cryptocurrency activities are illegal financial activities. The exchange of fiduciary currencies for cryptocurrency, cryptocurrency exchange, acquisition and sale of cryptocurrency in stock operations, provision of information services and brokering in cryptocurrency transactions, issuance of tokens to get backing and trading of cryptocurrency-based financial products in the PRC constitute illegal issuance of substitute currencies, illegal public offering of securities, illegal securities transactions and forward contracts, and illegal raising of funds, and is so strictly prohibited. Persons found guilty of illegal activities may be liable for criminal liability.
Foreign organisations and individuals are prohibited from providing cryptocurrency services in any form in the PRC. The fresh announcement provides for criminal liability for individuals established in the PRC who supply any assistance to abroad organisations and individuals in cryptocurrency transactions and RWA.
According to announcement No 42-2026, tablecoins linked to fiduciary currencies execute certain functions of legal tender. Without the approval of authorised authorities, no Chinese or abroad legal entity or natural individual may issue tablecoins linked to renminbi outside China.
Tokenisation of real planet assets (RPAs), as well as the provision of related brokering and information services, is characterised by illegal issuance of money substitutes, illegal public securities offerings, illegal securities transactions and future contracts, and illegal fund raising. Therefore, these operations may only be carried out with the approval of the manufacture regulatory authority and within the circumstantial financial infrastructure.
Investments by organisations or individuals in cryptocurrency, RWA and related financial products shall be considered invalid; investors shall bear any resulting failure at their own expense. In the event of a financial safety breach or a financial safety risk, the competent authorities shall be required to analyse the infringements and take appropriate action.
Overall, all cryptocurrency transactions in China stay outside the legal framework (as opposed to Hong Kong, which has a more liberal strategy for the issue and usage of cryptocurrency). The fresh regulation theoretically permits the issuance of risk-weighted assets (RWA) and stablecoins, but only with the approval of the applicable government agencies in China. Moreover, the Regulation explicitly prohibits the conduct of business abroad and allows the prosecution in China of persons assisting abroad organisations in providing services to Chinese residents.
(choice and crowd. PZ)
