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After making a whopping 25 million, losing half of it the next day, Leng Xi's wealth is forever trapped in leverage.
On the afternoon of April 9, Liang Xi shared his account record showing a daily profit of 25.04 million Chinese Yuan in a WeChat group, once again causing a sensation in the coin circle. Then, on April 10, Liang Xi's account's trading record showed that his BTC 50x short position lost 1.71 million US dollars, equivalent to about 12.5 million Chinese Yuan, erasing half of the previous day's gains. This significant rise and fall in trading style is precisely Liang Xi's most eye-catching characteristic—where the Chinese Yuan is like play money, easily lost and regained.
Liang Xi, whose real name is Geng Zhiyu, became a nationally certified level one swimmer at the age of 10, won the "King of Glory" championship in Hebei Province at the age of 15, and was sent to an internet addiction treatment center by his father at the age of 17 due to gaming addiction. From an ordinary young man in a small town in Shandong to one of the most controversial KOLs in the coin circle, his every move is full of drama. High leverage, creating sensationalism, community marketing, emotional trading... These labels almost constitute his investment style and personality traits, making his experience in the coin circle akin to a rollercoaster ride.
Leverage Maniac: The Gambler Mentality to the Extreme
In the early days of the coin circle, lacking mature financial instruments, retail investors could only rely on contract trading to quickly turn the tide. At that time, exchanges had not yet introduced a variety of financial products, staking, or DeFi gameplay. Contracts were the only casino table for retail investors to achieve a class leap, and they generally relied on high leverage trading to seek overnight wealth, with Liang Xi being a typical example of this phenomenon.
What made Liang Xi famous was the 519 event in 2021.
In May 2021, Liang Xi used only 1,000 yuan from his father's bank account, went short on Bitcoin with 100x leverage, employed a rapid in-and-out scalping strategy and a rolling position strategy, averaging one trade every 5 minutes, with 1454 trades in a single week. He turned the funds into tens of millions of Chinese Yuan within a month, with his assets reportedly exceeding 40 million at its peak—achieving great success in one battle, earning titles such as "Contract God" and "Genius of the Coin Circle."
Image source: Internet, reported to be Liang Xi's account balance screenshot after the "519" event
After becoming famous, he flaunted luxury cars (reportedly a Lamborghini), luxury goods, and trading screenshots on Weibo, even publicly disclosing his bank card balance in an attempt to prove his success. He once claimed in a post that he was "worth over a hundred million at 19," drawing a lot of attention but also facing criticism. This explosive wealth growth is inseparable from his extreme trading methods: high leverage, aggressive short-term trading, and a willingness to take big risks. On multiple occasions, he has publicly stated that he is accustomed to using 100x leverage, believing that only through gambling can one have a chance, even often betting his entire net worth.
Image Source: Weibo
However, the cryptocurrency world's myths often have a dual nature. Liang Xi's high-leverage operations, which brought him success at his peak, also led to a rapid fall from grace amid the market's ever-changing landscape. During Bitcoin's rebound in the second half of 2021, Liang Xi continued to employ a high-leverage strategy (often up to 100x), but a judgment error led to a liquidation. His assets plummeted from over 40 million yuan at the peak to substantial losses, even reaching millions in debt. From swiftly falling from the pedestal of a "genius trader" to becoming a topic of discussion in the community as a "deeply indebted" individual.
Although still engaging in various "abstract behaviors" online, Liang Xi was burdened by massive debt for a long time, facing daily debt collection and evasion. On July 6, 2023, Liang Xi posted on Coin suggesting that he was currently in debt for 130 million yuan. On June 19, 2024, Weibo influencer Xiaoxia released a post stating that Liang Xi had been sentenced to two years in prison for a 10,000 U fraud. In the online records of the China Enforcement Information Disclosure Network, it can be found that on November 1, 2024, Liang Xi's public information was enforced by the People's Court of Lixia District, Jinan City.
Image Source: China Enforcement Information Disclosure Network
Nevertheless, he did not give up his "gambler's faith" and continued to aggressively leverage even in the face of debt.
The turning point in the story occurred in 2025. On February 24, 2025, when Bitcoin plummeted to $8.6, causing 400,000 people across the network to be liquidated, Liang Xi used 2000 U at 50-100x leverage to trade ETH in a volatile market, engaging in high-frequency trading by shorting first and then going long, earning over 1 million U in a single day, shocking the market in one move. On March 10, 2025, during Bitcoin's $89,000 price swing, Liang Xi once again used 2000 U with 100x leverage, seizing short-term opportunities, making a wild $8 million overnight, sparking an "Liang Returns" frenzy on social media.
His logic was simple: as long as he made the correct bet once, he could rise again. Liang Xi's leverage philosophy made him one of the most legendary traders in the cryptocurrency world. He has both tasted great fortune due to high leverage and become a prisoner in the depths of despair due to reckless gambling. The long-term pressure and excessive excitement have also made his mental state increasingly unstable. To observers, Liang Xi seems like a reckless "madman," someone who walks the line between "genius" and "madman," a red-eyed gambler staging the ultimate human and price gamble in the market.
Clickbait Master: The Marketing Genius of the Crypto World
The early days of the crypto world saw a brutal environment for protecting rights, with exchange exit scams and rug pull events occurring frequently. In the absence of legal regulation and no resolution for retail investor complaints, extreme behavior was the only way to garner attention. Liang Xi's widely publicized "live suicide by drinking pesticide" in 2023 was not original but rather a ludicrous continuation of the 2018 "Paraquat Rights Protection Incident" — that year, investor Yang Chao, after losing over 11 million yuan on OKCoin and OKex, charged towards the exchange headquarters holding Paraquat in an attempt to seek justice from Xu Mingxing, sparking a sensation across the internet.
Liang Xi is well versed in this practice, and creating clickbait is the secret to maintaining his popularity. Riding on hot topics, engaging in sensationalism, and charity work, he fundamentally utilizes "self-destructive marketing" to seize the narrative. This "exchanging life for traffic" logic in rights protection is also the helpless resistance of early retail investors under systemic oppression.
Riding on Hot Topics, "Crypto New Year's Gala" Space Gets Founders' Attention
On the evening of October 17, 2022, TRON founder Justin Sun and Huobi co-founder Du Jun joined Liang Xi's Twitter Space live broadcast, announcing that each would unconditionally provide $50,000 in trading funds to Liang Xi, allowing him to place orders on Fire Token live contracts. Although this $100,000 fund was soon wiped out, this Space attracted a large number of users, with over 9,000 people online simultaneously, setting a record for Chinese encrypted Twitter and even reaching the top of the global real-time Twitter Space rankings. Justin Sun praised Liang Xi: "Liang Xi symbolizes the spirit of our crypto community to be more resilient in the face of setbacks, representing our community's will of 'can be defeated, but not crushed,' which is of unique significance to those who persist in their dreams during today's bear market."
Sensationalism, the "Paraquat Psychopath" of the Crypto World
Liang Xi has made numerous extreme statements and sensational images on public platforms. On July 6, 2023, when Liang Xi posted on currency coin that he was in debt of 130 million, he also claimed he was going to make a big news in a kindergarten, intending to ride the wave of the random kindergarten stabbing incident in Lianjiang, Guangdong, displaying a reckless and callous disregard for human life. According to Xia Xia Life, because of this statement, Liang Xi has been taken away for detention.
On September 6, 2023, Liang Xi announced on Weibo that he would drink pesticide to commit suicide. He posted a statement on social media accusing others, saying he had no way out, and if he didn't drink the pesticide, there would be a disaster. Today, he would be at a dead end due to being framed and blackened by Chen Zhichao (Ah Chao). He would immediately compile evidence of Chen Zhichao framing him. At the same time, he also posted a video in the community. In the video, he appeared mentally unstable. After apologizing to those who supported him, he took out a bottle of Paraquat and attempted suicide by drinking it, and the video ended. This extreme act caused a huge uproar online, with numerous articles similar to "genius traders falling to a miserable state of drinking pesticide" flooding the internet, and Liang Xi's popularity once again reached its peak.
On March 13, 2025, Liang Xi publicly announced on Twitter that he suddenly declared himself as having "taken transgender medication," and stated that he was "vomiting incessantly but will not undergo surgery." Combining Liang Xi's previous tweets, the reason he gave was that he had been deeply hurt in a past relationship and did not want to develop feelings for girls again. Therefore, he wanted to completely dispel this idea through gender reassignment and focus solely on trading cryptocurrency. Due to rate limiting issues, this tweet has been deleted.
As expected, this abrupt statement and crazy action instantly ignited social media, with discussions about his gender filling the air. Whether he was truly mourning a lost love or seeking attention, this move indeed once again put him in the spotlight of the cryptocurrency community.
Liang Xi is well-versed in the rules of generating traffic. He is not just a trader but also a master of creating topics. He shot to fame in 2021 and quickly became popular, setting a Chinese crypto community record with a Twitter livestream. Despite being embroiled in debt disputes, he exposed internal scandals within the community. Referred to by the media as a "crazy yet genius trader," every step he takes is in tune with the rhythm of online traffic.
Charity, Bringing Joy to Those in Need
Another contrasting aspect of Liang Xi is that after becoming affluent, he is willing to help those in need. On March 10, 2025, a netizen publicly appealed for help on Twitter, hoping that someone could assist his wife who had been diagnosed with a rare cancer. Upon seeing this, Liang Xi immediately retweeted the plea, expressing his willingness to provide financial support. After verifying the facts, he offered $50,000 (approximately 400,000 RMB) to cover the medical expenses and provide additional economic compensation to the netizen. On March 15, Liang Xi posted a follow-up video, stating, "In addition to the 400,000 in assistance, I will fully cover their future medical expenses in China. Additionally, if his loved one's condition improves, I will sponsor them for a trip to the Maldives or another tourist destination. I will cover all expenses!"
When some questioned whether this was a "script," the recipient of the aid stepped forward and confirmed that Liang Xi indeed funded him with 400,000 RMB, with all funds arriving on March 15.
Despite grandiosely promoting his charity work, which may harbor elements of publicity seeking and a desire to flip the script and prove his worth to those who once looked down on him, Liang Xi has openly demonstrated his commitment to assisting those in need. On April 9, he once again donated 36,000 RMB to a disabled fan. He has repeatedly stated that he understands the hardships of the poor as he came from an economically disadvantaged background. Now that he has earned money, he is willing to help those truly facing life's challenges.
Marketing Guru: From Retail Investor Idol to Controversial Figure
Despite the continuous transformation and upgrade of the crypto industry during its development, gradually moving away from its grassroots nature, its essence has not changed. It remains the most realistic battleground.
During the 2021 crypto boom, Liang Xi established his own fan base, calling them the "Liang Family," creating a familial sense of belonging. To maintain community engagement, he not only interacted frequently but also generously distributed red envelopes to reward his fans multiple times, even maintaining this generous behavior despite significant trading losses. This "generous" image significantly increased the stickiness of his fans.
After losing billions in high-leverage trading, he did not disappear but generously admitted his failure, even self-deprecating as the "most pitiful trader on the internet" during live broadcasts, successfully garnering sympathy. He often shared his market predictions and trading positions on social media, showcasing them loudly regardless of profit or loss. On May 29, 2024, Liang Xi became a signal provider on the Bitget exchange, further attracting market attention with each trade. Faced with increasing influence, partly to reduce losses to copy traders due to his judgment errors and partly to attenuate the market turbulence caused by his trading behavior, on March 12, 2025, Liang Xi announced that he would kick out all copy traders exceeding $1000.
However, over time, cracks began to appear in his "Liang Family" community. The reason was simple: debt issues seriously challenged his credibility. In September 2024, several creditors publicly accused him of "failing to repay debts" on social media. Even in X's live broadcast Space, someone directly confronted him, causing Liang Xi to be engulfed in a public relations storm. Faced with this situation, his response remained the same: creating even greater sensationalism to cover up old controversies, leading to various horse-catching incidents as mentioned earlier. In early 2025, he once again tried to make a comeback, proposing the slogan "Make the Crypto Industry Great Again" to continue rallying the "Liang Family" to "rectify the crypto industry."
The "money-first" logic of the crypto industry is vividly reflected in Liang Xi's experience: lauded as the "Young Buffett" when making money, he plunged into a "crazy gambler" when losing money, basking in glory when profiting, and facing betrayal when failing.
Liang Xi's story is not only a microcosm of the crypto industry's wealth myth but also a case of leverage trading backlash. His madness and downfall are a bloody fable of the wild era of the crypto industry, with his gambler strategy, sensationalism for justice, and followers turning against him all reflecting the struggles of early retail investors in a chaotic market. As the industry moves towards compliance and institutions replace grassroots players as the main characters, Liang Xi's story will eventually become a teardrop of the times, reminding later retail investors that the myth of sudden wealth is not their redemption but a cruel game of capital and luck.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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