Lawyer: Three Points to Watch in China's New Cryptocurrency Policy

Author: Jin Jian Zhi Original Link: Disclaimer: This article is a reprint. Readers can obtain more information through the original link. If the author has any objections to the reprint, please contact us, and we will make modifications according to the author’s requirements. Reprints are only for information sharing and do not constitute any investment advice or represent Wu Shuo’s views and positions. On February 6, 2026, the People’s Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and six other departments jointly issued the “Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies and Other Issues” (Yinfa [2026] No. 42, hereinafter referred to as the “Notice”). On the same day, the China Securities Regulatory Commission also issued the “Guidelines on the Regulation of Domestic Assets Issued as Asset-Backed Securities Tokens Abroad” (hereinafter referred to as the “Guidelines”). Subsequently, officials from the People’s Bank of China and the China Securities Regulatory Commission answered reporters’ questions regarding the “Notice,” further clarifying policy orientation and implementation requirements.\n For a long time, domestic activities related to blockchain and cryptocurrencies with financial characteristics have been strictly prohibited and comprehensively banned. In this context, if new policies are announced with some new content, it is generally considered positive because it cannot get any worse.\n On February 6, a notice, a guideline, and a Q&A with reporters were released, what new content was there:\n 1. The stablecoin of the Renminbi cannot be issued. The previously attempted offshore Renminbi stablecoins are definitely a no-go. This decision aligns with our previous understanding: as a highly controlled currency, the Renminbi currently cannot support uncontrolled stablecoins. The authorities believe that the risks far outweigh the benefits.\n 2. Tokenization of real-world assets cannot be done domestically. The so-called RWA (Real-World Asset Tokenization) is not allowed domestically; previously, people were doing it on the fringes in Hong Kong. Now, the authorities believe it can be done abroad. The specific methods are detailed in the China Securities Regulatory Commission’s No. 1 Announcement of 2026. The No. 1 Announcement of 2025 is the “Legal Application Opinions on Securities and Futures Laws No. 19—Opinions on the Application of Articles 13 and 14 of the ‘Management Measures for the Acquisition of Listed Companies’.” It is clear that RWA in the crypto space is now on the same regulatory level as listed companies.\n 3. The tokenization of real-world assets abroad should be done properly. No country and no money can be bypassed. But as a responsible major country, even RWA issued abroad must be of high quality; domestic assets with issues cannot be used, and issuers with problems cannot be involved. Out of responsibility to the global people, we will only issue RWA backed by high-quality domestic assets, with the endorsement of the China Securities Regulatory Commission. The issuer must file with the CSRC, submit relevant materials such as filing reports, complete issuance documentation abroad, and fully disclose information about the domestic filing entity, underlying assets, and token issuance plans.\n Previously, the CSRC regulated the issuance, listing, trading, custody, and settlement of stocks, bonds, funds, futures, and derivatives, as well as the business activities of related institutions. Regulating RWA now clearly indicates that this is no longer a business open to all participants. The first compliant offshore asset tokenization by a major player will definitely belong to a big player. If real-world asset tokenization proves to be more cost-effective and capable of raising more funds than traditional asset securitization, the crypto industry will undoubtedly make an indelible contribution to China’s economic development.\n Anyway, it looks like a good thing.