China's seven major financial industry associations jointly warn: Cryptocurrency, RWA, and mining are all illegal! Overseas platforms also tread red lines when providing services

Seven major financial industry associations, including the China Internet Finance Association, simultaneously released a jointly signed "Risk Warning on Preventing Illegal Activities Involving Virtual Currency" on their respective official websites today (5th). The document reaffirms and significantly expands the scope of China’s cryptocurrency ban.
(Preliminary summary: The Chinese currency circle panic-sold USDT "at a negative premium of 1.5% against the RMB", a bear market, a wave of regulatory flight?)
(Background supplement: The People's Bank of China announced a joint operation to "combine cryptocurrency trading speculation": stable coins and other illegal financial activities)

Contents of this article

China Internet Finance Association, China Banking Association, China Securities Industry The seven major national financial industry associations, including the Association, China Securities Investment Fund Association, China Association of Listed Companies, China Payment and Clearing Association, and China Futures Association, today (5th) simultaneously released a jointly signed "Risk Warning on Preventing Illegal Activities Involving Virtual Currency" on their respective official websites.

This risk warning points out that the current concepts related to virtual currencies are rapidly heating up. Under the banners of stable coins, "air coins" such as π coins, RWA (tokenization of real world assets), and "mining", criminals are engaged in illegal fund-raising, pyramid schemes, fraud and money laundering activities, seriously endangering people's property security and financial order. Therefore, China's cryptocurrency ban has been reiterated and significantly expanded.

Three core contents of the risk warning

First, clarify the essential attributes and legal status of virtual currencies and related activities

The document emphasizes that virtual currencies do not have the status of legal tender and may not be used as currency in China. The document specifically names "air coins" such as π coins that have no technological innovation or value support and are often used for pyramid schemes; stable coins cannot meet anti-money laundering requirements and can easily become money laundering tools; RWA tokenization involves multiple risks such as false assets, business failure, and speculation. The document reiterates that currently, China’s financial regulatory authorities have never approved any RWA tokenization project and all related activities are illegal.

Second, domestic and foreign institutions are prohibited from carrying out relevant businesses

The document continues to point out that any domestic institution or individual is not allowed to engage in activities such as the exchange of legal currency and virtual currency, virtual currency or RWA token issuance and transactions. If an overseas exchange provides services to Chinese residents directly or in disguised form, it is also an illegal financial activity. Its domestic staff, agents, and institutions and individuals who knowingly provide marketing, payment, and technical support will be held accountable in accordance with the law. Banks and payment institutions are not allowed to provide accounts, fund transfers, clearing and other services for virtual currency trading or "mining" companies; securities, funds, and futures companies are not allowed to design related financial products; online platforms are not allowed to provide any form of support such as publicity, technology, links, QR codes, etc.

Third, the public is called on to be more vigilant, stay away from and report illegal activities

The document reminds the public that virtual currency prices fluctuate violently and are often used for fraud and illegal fund-raising. It calls on people not to listen to false propaganda such as "guaranteed profits" and "historical returns", and not to click on links to overseas trading platforms. Once relevant clues are discovered, they should immediately report to the regulatory authorities or report the case to the public security agency.

Regarding this joint announcement, crypto KOL @_FORAB also commented on the X platform that in the future, there will no longer be any compliant blockchain, compliant RWA, or compliant tokenized financial products in mainland China:

Welcome to report and arrest people? Today, the Internet Financial Association, composed of the central bank, China Securities Regulatory Commission, China Banking Regulatory Commission and other government departments, officially issued a new round of regulatory crackdown documents on the currency circle.

Special note: If you find anyone involved in virtual currency or RWA-related business activities in mainland China, you are welcome to report to the supervision and report the case in a timely manner.

Compared with the previous round of 519 tightening in 2021, this time there are new additions:

• Relevant communities and guided registration exchanges are illegal
• Real-world asset tokenization activities RWA are illegal
• Such as online platforms, listed companies, payment institutions, etc., are not allowed to provide any support for such activities, nor are they allowed to provide financial services to mining companies.

This also means that in the future, there will no longer be any compliant blockchain, compliant RWA, or compliant tokenized financial products in mainland China. Those who provide agency, traffic flow, and customer service for exchanges and token-related businesses will also be held accountable.

China has recently tightened its policy on cryptocurrency in an all-round way

In fact, this risk warning is not an isolated action. Just a week ago, on November 29, the headquarters of the People's Bank of China convened more than a dozen ministries for a closed-door meeting. After the meeting, it reiterated that China's virtual currency ban established in 2021 "is still effective and will only become stricter" and required all local departments to further escalate their crackdowns. This joint statement by the seven major associations is a concrete implementation of the spirit of the meeting, showing that Chinese officials still adopt a high-pressure posture of "comprehensive containment and no blind spots" against cryptocurrency and new token activities.