The People’s Bank of China and seven other ministries and commissions jointly issued regulatory provisions related to virtual currencies and real-world asset (RWA) tokenization: Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies and Other Activities (Yin Fa 2026 No. 42) (Document No. 42). Document No. 42 expands the regulatory scope from virtual currency trading to the entire chain of “virtual currency + RWA + stablecoins,” and establishes a clear dual-track regulatory responsibility system and strict cross-border business rules. Core Viewpoint: The “Document No. 42” jointly issued by eight Chinese departments is the most comprehensive and precise regulatory document on virtual currency, stablecoins, and real-world asset (RWA) tokenization to date. For the first time, it explicitly brings RWA and stablecoins into the core regulatory framework, defining RWA as activities that use cryptographic technology to convert asset rights into tokens for trading.
It establishes a dual-lead regulatory mechanism, with virtual currency regulation led by the central bank and RWA regulation led by the CSRC, addressing the previous difficulty in multi-departmental coordination and implementation. It clarifies that domestic RWA activities are prohibited unless approved by the competent authority and carried out relying on specific financial infrastructure. It strengthens cross-border supervision with a look-through principle of “same business, same risk, same rules” for behaviors such as domestic entities issuing tokens overseas or conducting RWA financing based on domestic assets. It reinforces responsibilities for financial institutions and intermediaries by requiring overseas branches to prudently conduct RWA business and integrate it into the head office’s risk control system, and by bringing cross-border intermediaries into regulatory reporting.
It extends civil liability provisions to cover investments in real-world asset tokens and related financial products that violate public order and good morals as invalid civil legal acts, with investor rights not protected by law. The CSRC will simultaneously issue supporting guidelines for overseas issuance of asset-backed security tokens based on domestic assets, clarifying filing processes, negative lists, and ongoing supervision, preserving a limited window for compliant business. The eight departments, including the PBOC and NDRC, are the issuing authorities, approved by the State Council, with issuing power higher than prior instruments. It also updates legal bases and repeals some documents.
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