- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
Earn- More
SEC Watershed Moment? 2025 Could Be the 'Altcoin ETF' Year, Which Tokens Are Most Likely to Be Approved
Original Article Title: "Every U.S. Crypto ETF You Need to Know About in 2025"
Original Source: Coingecko
Original Translation: Felix, PANews
With a more crypto-friendly U.S. government in power and the departure of SEC Chairman Gary Gensler, asset management firms are now rolling out a broader range of exchange-traded funds (ETFs), covering altcoins, memecoins, and even NFTs.
Key Points
· BTC and ETH spot ETFs have attracted billions of dollars in institutional inflows, legitimizing cryptocurrency in TradFi.
· Asset management firms are actively applying for ETFs covering Solana, XRP, Litecoin, Cardano, and more.
· ETFs for memecoins like DOGE, TRUMP, BONK, and PENGU have also been submitted for approval.
· Bloomberg and Polymarket estimate approval odds for assets like SOL, XRP, and LTC to be between 75% to 90%, while assets like SUI, APT, and meme-based funds have very low approval odds.
The crypto space is rife with divisions. From liquidity to views on L1 maximalism, opinions vary widely. But if there's one thing that can unite all crypto enthusiasts, it's the desire for cryptocurrency to be embraced by the mainstream.
Between 2024 and 2025, as cryptocurrency ETFs gained approval and rapidly expanded, the dream of mainstream cryptocurrency acceptance took a significant leap forward.
For the first time, investors could directly invest in various digital assets through traditional brokerage accounts without the need for complex crypto wallets or exchanges.
Institutional investors who were previously hesitant due to regulatory uncertainty poured in billions of dollars within weeks of the Bitcoin and Ethereum ETF launches. The impact was immediate. Bitcoin surged to new all-time highs, and the Ethereum ETF was quickly approved. These ETFs provided a more convenient investment avenue and deeper market liquidity for traditional financial participants, setting a precedent for the regulatory approval of other cryptocurrency ETFs.
Today, with Gary Gensler stepping down as the Chair of the U.S. Securities and Exchange Commission and the U.S. being governed by a more crypto-friendly administration, asset management companies are seizing this opportunity to apply for more altcoin ETFs, such as Solana and Ripple, and even meme coins like Dogecoin, BONK, and the Trump Memecoin.
This article provides a comprehensive overview of the current state of the cryptocurrency ETF craze.
Bitcoin ETF Setting the Foundation for the Market
Bitcoin has long been the face of cryptocurrency, and in 2024, with the approval of the first U.S. physically-backed Bitcoin ETF, Bitcoin officially entered the mainstream financial system. While Bitcoin futures ETFs have existed since 2021, the launch of a physically-backed ETF was a watershed moment as investors could directly hold actual Bitcoin assets rather than derivative contracts.
Within days of being listed, the physically-backed Bitcoin ETF attracted billions of dollars in inflows. This influx of funds significantly increased Bitcoin's liquidity and solidified its position as a legitimate asset class on par with traditional commodities like gold.
As multiple asset management companies quickly rolled out competitive Bitcoin ETFs, the market swiftly became a battleground of investor attention. While BlackRock's iShares Bitcoin Trust initially dominated early inflows, companies like Fidelity, ARK Invest, and VanEck also gained significant participation.
By 2025, several major asset management companies had launched physically-backed Bitcoin ETFs. Here are the key funds and their Bitcoin holdings details.
Source: Blockworks Bitcoin ETF Tracker
Key Differences Between Futures Bitcoin ETFs and Physically-Backed Bitcoin ETFs:
· Futures-based Bitcoin ETFs (e.g., BITO): Hold Bitcoin futures contracts on the Chicago Mercantile Exchange, not actual Bitcoin. Due to contract rolling, tracking errors are common.
· Physically-backed Bitcoin ETFs (e.g., IBIT): Directly hold Bitcoin, enabling precise tracking of Bitcoin's market price.
Ethereum ETF
Following the success of the Bitcoin ETF, the next significant milestone in the cryptocurrency ETF space is the launch of an Ethereum ETF. While Bitcoin is often referred to as "digital gold," Ethereum serves as the backbone of the DeFi and smart contract ecosystem.
Initially, regulators were hesitant to approve an Ethereum ETF. With the U.S. SEC approving a spot Bitcoin ETF in early 2024, the path for Ethereum became clearer.
By May 2024, several Ethereum futures ETFs received regulatory approval, marking another watershed moment for cryptocurrency adoption. A spot Ethereum ETF was then approved in July 2024. In the months leading up to approval, Ethereum's price surged past the $4,000 mark, mirroring Bitcoin's earlier rally this year.
As of 2025, Ethereum spot ETFs collectively hold a significant amount of Ether, making it one of the largest institutional investment vehicles for the asset.
Source: Blockworks Ethereum ETF Tracker
At the time of writing, nearly 3 million ETH is held by ETFs, signaling increased institutional participation in ETH.
Altcoin ETF Season Approaching
With the solidification of spot Bitcoin and Ethereum ETFs, asset management firms are now turning their attention to the broader cryptocurrency ecosystem.
Encouraged by the growing openness of the U.S. SEC towards cryptocurrencies and ongoing enhancements in market regulatory structures, asset managers have applied for a wave of altcoin ETFs. These proposals aim to attract investors to Litecoin, XRP, Solana, Dogecoin, Cardano, and other popular tokens.
While the U.S. has yet to approve any altcoin ETFs, several are in active review, and regulatory attitudes are evolving. Analysts and industry insiders believe that once the first one is approved, other altcoin ETFs will quickly follow suit, much like the domino effect seen with Bitcoin and Ethereum approvals.
Solana (SOL) ETF
Solana has surged in popularity over the past year, making it one of the sought-after candidates for an altcoin ETF. With a robust DeFi ecosystem, Solana is seen as Ethereum's strongest competitor in the smart contract space.
However, a key regulatory hurdle still exists: whether Solana is deemed a security. Ongoing litigation and classification disputes could delay a decision by the U.S. SEC. Nevertheless, the infrastructure is already taking shape—DTCC (Depository Trust & Clearing Corporation) has listed two Solana futures ETFs (SOLZ, SOLT), and the Chicago Mercantile Exchange is preparing to launch SOL futures contracts for 2025.
VanEck Solana Trust Fund
Filing Date: June 2024
Details: VanEck has submitted an S-1 registration statement to the U.S. SEC, planning to launch a Solana spot ETF designed to directly track the price of SOL. This is the first-ever application for a Solana spot ETF in the U.S.
21 Shares Core Solana ETF
Filing Date: June 2024
Details: Following in VanEck's footsteps, 21 Shares has submitted an S-1 filing to the U.S. SEC, applying for a Solana spot ETF to be listed on the Cboe BZX exchange.
Bitwise Solana ETF
Filing Date: November 2024
Details: Bitwise initially applied to establish a statutory trust for a Solana ETF in Delaware, later withdrawing the application and resubmitting an S-1 filing to the U.S. SEC.
Grayscale Solana ETF (Spot ETF Conversion)
Filing Date: January 2025
Details: Grayscale has filed an application with the U.S. SEC to convert its existing Solana Trust (GSOL) into a spot ETF and list it on the New York Stock Exchange's Arca platform. This application is based on its $1.34 billion AUM trust.
Canary Solana ETF
Submission Time: Late 2024 to Early 2025
Details: Canary Capital has submitted the S-1 filing for a Solana spot ETF to the U.S. SEC. This comes at a time when interest in altcoin ETFs is increasing, especially following Trump's re-election.
Franklin Dupton Solana ETF
Submission Time: March 2025
Details: Franklin Dupton, managing over $1.5 trillion in assets, has filed S-1 and 19b-4 forms with the U.S. SEC, planning to launch a spot Solana ETF on the BZX Exchange platform in Chicago, making it the sixth major institution to apply for a U.S. spot SOL ETF.
According to Bloomberg industry research analysts, there is a high likelihood (75%) of approval for the Solana ETF.
Potential Impact: Analysts estimate that if approved, the ETF could bring in $30 billion to $60 billion in inflows.
XRP ETF
XRP faces a unique challenge: its legal status. Despite some legal victories in 2023, the final stance of the U.S. SEC on whether XRP is a security remains unclear. However, the submission of numerous relevant documents in early 2025 indicates optimism that legal clarity is on the horizon, or at least sufficient for ETF approval on trading platforms.
Bitwise XRP ETF
Submission Date: October 2024
Details: Bitwise Asset Management has filed an S-1 registration statement with the U.S. SEC, marking the first formal U.S. XRP ETF proposal.
Canary Capital XRP ETF
Submission Date: October 2024
Details: Canary Capital, founded by former Valkyrie Funds co-founder Steven McClurg, has submitted the S-1 registration document for a spot XRP ETF to the U.S. SEC.
21 Shares Core XRP ETF
Filing Date: November 2024
Details: Switzerland-based cryptocurrency investment company 21 Shares has filed an S-1 registration document with the U.S. SEC, planning to launch a physically backed XRP ETF.
WisdomTree XRP ETF
Filing Date: December 2024
Details: Global asset management firm WisdomTree has filed an S-1 registration document with the U.S. SEC, planning to launch a physically backed XRP ETF, which will be listed on the Cboe BZX exchange.
Grayscale XRP ETF (Spot ETF Conversion)
Filing Date: January 2025
Details: Grayscale Investments has submitted an application to the U.S. SEC, planning to convert its existing XRP Trust (with assets under management of $16.1 million as of January 2025) into a spot ETF, which will be listed on the New York Stock Exchange Arca.
CoinShares XRP ETF
Filing Date: January 2025
Details: European cryptocurrency investment company CoinShares has filed an S-1 listing application with the U.S. Securities and Exchange Commission (SEC), planning to launch a physically backed XRP ETF.
ProShares XRP ETF
Filing Date: January 17, 2025
Details: ProShares has submitted an S-1 listing application to the U.S. SEC, applying for a physically backed XRP ETF, and has also submitted applications for three other XRP-related investment products (details undisclosed).
Teucrium XRP ETF
Submission Date: January 21, 2025
Details: Teucrium has submitted an S-1 listing application to the U.S. SEC, applying for a spot XRP ETF.
MEMX XRP ETF
Submission Date: February 2025 (specific date not disclosed)
Details: U.S.-based securities trading platform MEMX has submitted an application to the U.S. SEC, applying to launch an XRP ETF under the commodity trust category.
Volatility Shares XRP ETF
Submission Date: March 10, 2025
Details: Volatility Shares has submitted an S-1 listing application to the U.S. SEC, applying for a spot XRP ETF designed to directly track XRP's price.
Franklin Templeton XRP ETF
Submission Date: March 11, 2025
Details: Franklin Templeton (with over $1.5 trillion in assets under management) has submitted an S-1 and 19b-4 form to the U.S. SEC, applying to launch a spot XRP ETF with Coinbase Custody as the custodian.
Will XRP ETFs be approved? The likelihood is low (Bloomberg analysts predict a 65% approval chance). However, according to Polymarket data, the approval chance is higher at 81%.
Potential Impact: JPMorgan analysts estimate that if XRP ETFs are approved, they could attract $4 billion to $8 billion of ETF inflows, significantly boosting XRP's market cap and credibility.
Litecoin (LTC) ETF
If Bitcoin is considered "digital gold," then Litecoin is seen as "digital silver."
Litecoin has always been one of the oldest and most actively traded cryptocurrencies in the market. Created by Charlie Lee in 2011, Litecoin aims to provide faster transaction speeds and lower transaction fees than Bitcoin, making it an ideal choice for everyday transactions.
Canary Capital Litecoin ETF
Filing Date: October 2024
Details: Has submitted an S-1 registration statement to the U.S. SEC, marking the first-ever proposed Litecoin spot ETF in the United States.
The Canary Litecoin ETF is currently seen as the most likely approval for a altcoin ETF. LTC has a long history dating back to 2011 and meets several criteria of the U.S. SEC in terms of liquidity, history, and market maturity.
Grayscale Litecoin Trust (ETF Conversion)
Filing Date: January 2025
Details: Grayscale Investments has submitted an application to the U.S. SEC to convert its existing Grayscale Litecoin Trust (LTCN) holding $127.4 million in assets into a spot ETF. The converted ETF will be listed on the New York Stock Exchange Arca.
Grayscale's decision to convert the existing Litecoin Trust into an ETF further strengthens market expectations that Litecoin will be one of the first altcoins to receive ETF approval.
CoinShares Litecoin ETF
Filing Date: January 2025
Details: European digital asset management firm CoinShares has submitted an S-1 listing application to the U.S. SEC for a proposed Litecoin spot ETF to provide investment opportunities without direct custody. This ETF will be issued in units of 5,000 shares per basket and traded on Nasdaq.
Will the Litecoin ETFs be approved? High likelihood (analysts estimate a 90% chance of approval in 2025).
Potential Impact: With the opening of the ETF channel, LTC's visibility, liquidity, and price are expected to increase.
Cardano (ADA) ETFs
Cardano is one of the top ten cryptocurrencies by market capitalization with a large and loyal community. Its focus on peer-reviewed development and environmental sustainability makes it attractive to ESG-focused investors. However, the lack of a futures market in the U.S. could potentially delay approval by the U.S. SEC.
Grayscale Cardano Trust (ETF Conversion)
Filing Date: February 2025
Details: New York Stock Exchange Arca, on behalf of Grayscale Investments, has submitted a 19b-4 form to the U.S. SEC, planning to list and trade shares of the Grayscale Cardano Trust on the New York Stock Exchange Arca under the ticker symbol GADA.
Will the ADA ETF be approved? According to Polymarket data, the outlook for a Cardano ETF is positive, with a 65% approval probability.
Potential Impact: Increase in staking participation, growth in the number of validators, and long-term price stability.
Avalanche (AVAX) ETF
Avalanche is another L1 blockchain competing with Ethereum. VanEck's trust setup indicates its intention, but due to a lack of a formal SEC application, it means it is still in the early stages.
VanEck Avalanche ETF
Filing Date: March 2024
Details: Global asset management firm VanEck has submitted an S-1 registration statement to the SEC to launch a spot Avalanche ETF.
Will the AVAX ETF be approved? Bloomberg ETF analyst James Seyffart stated that while the likelihood of a spot AVAX ETF is relatively low, that possibility may increase significantly later this year.
Potential Impact: Will largely depend on the approval environment for Solana and Cardano.
Aptos (APT) ETF
Aptos is an L1 blockchain built by former Meta engineers. The ETF application submitted by Bitwise is seen as a bold move aimed at capturing the next wave of altcoin growth.
Bitwise Aptos ETF
Filing Date: March 2025
Details: Bitwise Asset Management has submitted an S-1 registration statement to the U.S. SEC.
Previously, Bitwise registered the "Bitwise Aptos ETF" trust entity in Delaware on February 25, 2025, as an initial administrative step. The S-1 application submitted on March 5 formalized the ETF proposal, with Coinbase Custody listed as the proposed custodian.
Will the APT ETF be approved? The likelihood is low to medium (more likely after the approval of SOL, XRP, and ADA).
Potential Impact: If approved after other altcoin ETFs, the short-term impact may be minimal, but it would be a symbolic victory for emerging blockchains.
Sui (SUI) ETF
Like Aptos, Sui is a nascent L1 blockchain with a growing ecosystem. The currently submitted ETF application is largely speculative, indicating long-term confidence rather than imminent approval.
Canary Sui ETF
Submission Date: March 2025
Details: Canary Capital has submitted an S-1 registration statement to the U.S. SEC. The application does not explicitly state the ETF's trading platform or ticker symbol. Prior to submitting the S-1, Canary Capital registered a trust entity for the Sui ETF in Delaware on March 6, 2025, as a preliminary step.
Will the SUI ETF be approved? The likelihood is extremely low (not expected before 2026).
Potential Impact: Shortly after the news of the SUI ETF application emerged, its price surged over 10%. If this enthusiasm continues, the potential impact on the SUI price could exceed previous all-time highs.
Move (MOVE) ETF
The MOVE ETF aims to track the price of Move Network's native token MOVE. Move Network is an Ethereum L2 protocol built on MoveVM (originally developed by Facebook's Diem team). Move focuses on faster speeds, gas efficiency in smart contracts, positioning itself as the next-generation blockchain infrastructure layer.
The MOVE ETF adopted the application strategy of the previous L1 ETFs (such as Aptos and Sui), but with a greater emphasis on technology and the developer community.
Rex-Osprey MOVE ETF
Issuer: Rex Shares and Osprey Funds
Details: REX Shares, in collaboration with Osprey Funds, submitted the S-1 registration statement for the "Rex-Osprey MOVE ETF" to the U.S. SEC on March 10, 2025. The ETF is awaiting the U.S. SEC's confirmation of its 19b-4 form to enter the formal review process.
Will the MOVE ETF be approved? MOVE is still a relatively new asset, lacking deep institutional liquidity or a derivatives market. Therefore, the likelihood of approval is not very optimistic.
Potential Impact: If approved, MOVE could become a blueprint for ETFs based on infrastructure tokens (such as Optimism and StarkNet).
Meme Coin ETF
Although meme coins are an anomaly in the world of cryptocurrency, often seen as a network joke with no intrinsic value (this view does have some merit), their endurance and cultural relevance are undeniable.
Today, asset management companies are beginning to test the boundaries of regulatory approval by submitting ETF proposals for some of the most well-known meme coins, including Dogecoin, TRUMP coin, and BONK coin.
Can meme-based assets be issued as regulated financial products? If so, how do regulatory bodies define the line between satire and security?
Dogecoin (DOGE) ETF
Few meme coins have been able to transcend their "meme status" and become tokens that have real-world impact. Dogecoin is one of them.
Dogecoin (DOGE) has consistently held a top position in the cryptocurrency market cap, demonstrating strong resilience through multiple market cycles. Its high liquidity, broad exchange support, and active user base have made it an increasingly attractive asset for institutional products.
Rex Shares Osprey Dogecoin ETF
Submission Date: January 2025
Details: This is part of a wave of applications targeting meme coins and other cryptocurrencies.
Grayscale Dogecoin Trust (ETF Conversion)
Submission Date: January 2025
Details: Grayscale Investments submitted an application to the U.S. SEC on January 31, 2025, to convert its existing private Dogecoin Trust into a spot ETF and list it on the New York Stock Exchange Arca under Rule 8.201-E (Commodity-Based Trust Shares).
Bitwise Dogecoin ETF
Submission Date: Entity Registered, Full Application Pending
Details: As a preliminary step, Bitwise Asset Management registered the "Bitwise Dogecoin ETF" trust entity in Delaware on January 23, 2025. Subsequently, they submitted an S-1 registration statement to the U.S. SEC on January 28, 2025, to launch a Dogecoin (DOGE) spot ETF. The New York Stock Exchange Arca submitted a 19b-4 form to the U.S. Securities and Exchange Commission on March 3, 2025, to approve the ETF for trading, advancing the approval process.
Will the Dogecoin ETF be approved? Bloomberg ETF analyst Eric Balchunas believes there is a 75% chance of a Dogecoin ETF approval.
Potential Impact: The approval of a Dogecoin ETF could serve as a catalyst for meme coins to gain mainstream market acceptance.
Trump Memecoin ETF
By the end of 2024, amidst political discussions and meme culture collision, the TRUMP token quickly gained popularity.
Rex Shares Trump ETF
Submission Date: January 21, 2025
Of all the ETF applications in 2025, this is undoubtedly the most controversial as it marks the first serious attempt to package a meme coin with a clear political imprint into an ETF.
Its ETF proposal commits to invest 80% or more of the assets in the token or its related derivatives.
Will the Trump ETF be approved? Due to the politically charged nature of the underlying asset (i.e., the Trump Memecoin), the ETF is likely to be denied. Even ETF experts like Bloomberg's Eric Balchunas have called the application "absurd." Most analysts believe this is merely a test case or a publicity stunt rather than a legitimate path to approval.
Potential Impact: If the ETF is approved, it would pose a significant risk to the reputation of the U.S. SEC.
BONK ETF
The BONK ETF application was submitted concurrently with the TRUMP ETF application as part of Rex Shares' expansion into the memecoin business strategy.
Given BONK's significant traction on Solana and its strong retail participation, it could be a candidate for a more "serious" memecoin ETF.
Rex Shares BONK ETF
Application Date: January 21, 2025
Issuer: Rex Shares / Osprey
Asset: BONK – Shiba Inu-themed meme coin on Solana
Will the BONK ETF be approved? The likelihood of the BONK ETF being approved in the near to medium term is very low.
Potential Impact: If the BONK ETF is approved, it could trigger a series of issues leading to the entry of other memecoin ETFs (such as PEPE and FWOG) into the market.
PENGU ETF
PENGU is the official token of the Pudgy Penguins NFT series.
Canary Capital PENGU ETF
Submission Date: March 2025
Details: The Canary PENGU ETF application is in the early stages, having only submitted an S-1 form so far. The next steps involve the trading platform (such as Nasdaq or the Chicago Options Exchange) submitting a 19b-4 form and obtaining approval from the U.S. SEC.
Unlike other NFT-focused cryptocurrency ETFs, this fund plans to hold both cryptocurrency and NFTs. Specifically, its asset allocation will be as follows:
· 80% to 95% of the asset allocation to the native token PENGU of the Pudgy Penguins ecosystem.
· 5-15% allocated to Pudgy Penguins NFTs.
· The remaining allocation will be used for ETH and SOL to enhance liquidity.
If approved, it will become the first ETF in the United States to directly hold NFTs.
Significance:
· First time NFTs have been included in a regulated investment vehicle.
· Opens the door for other NFT collections (e.g., Bored Apes and Azuki).
· Provides a new investment avenue for speculators and culture investors.
Will the PENGU ETF be approved? The likelihood is low to uncertain. The U.S. SEC has never approved an ETF holding non-fungible assets, and questions remain about the valuation, custody, and settlement of such NFTs.
Potential Impact: The first time NFTs are included in a regulated investment vehicle could significantly increase attention on PENGU and Pudgy Penguins, driving up the floor price.
Conclusion
2024-2025 is a critical period for cryptocurrency ETFs.
Bitcoin and Ether funds are now part of the financial landscape, with a second wave of crypto assets ready to await the U.S. SEC's decision. This year and the next could see funds for Litecoin, XRP, Solana, Dogecoin, and other crypto assets, significantly expanding the influence of crypto assets in traditional markets.
Whether each pending ETF will be approved depends on the leniency of regulation and the maturity of the market. If most ETFs are approved, by 2026, we may witness a closer integration of the crypto industry with mainstream finance.
You may also like
Token Cannot Compound, Where Is the Real Investment Opportunity?
February 6th Market Key Intelligence, How Much Did You Miss?
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.
Former Partner's Perspective on Multicoin: Kyle's Exit, But the Game He Left Behind Just Getting Started
Why Bitcoin Is Falling Now: The Real Reasons Behind BTC's Crash & WEEX's Smart Profit Playbook
Bitcoin's ongoing crash explained: Discover the 5 hidden triggers behind BTC's plunge & how WEEX's Auto Earn and Trade to Earn strategies help traders profit from crypto market volatility.
Wall Street's Hottest Trades See Exodus
Vitalik Discusses Ethereum Scaling Path, Circle Announces Partnership with Polymarket, What's the Overseas Crypto Community Talking About Today?
Believing in the Capital Markets - The Essence and Core Value of Cryptocurrency
Polymarket's 'Weatherman': Predict Temperature, Win Million-Dollar Payout
$15K+ Profits: The 4 AI Trading Secrets WEEX Hackathon Prelim Winners Used to Dominate Volatile Crypto Markets
How WEEX Hackathon's top AI trading strategies made $15K+ in crypto markets: 4 proven rules for ETH/BTC trading, market structure analysis, and risk management in volatile conditions.
A nearly 20% one-day plunge, how long has it been since you last saw a $60,000 Bitcoin?
Raoul Pal: I've seen every single panic, and they are never the end.
Key Market Information Discrepancy on February 6th - A Must-Read! | Alpha Morning Report
2026 Crypto Industry's First Snowfall
The Harsh Reality Behind the $26 Billion Crypto Liquidation: Liquidity Is Killing the Market
Why Is Gold, US Stocks, Bitcoin All Falling?
Key Market Intelligence for February 5th, how much did you miss out on?
Wintermute: By 2026, crypto had gradually become the settlement layer of the Internet economy
Token Cannot Compound, Where Is the Real Investment Opportunity?
February 6th Market Key Intelligence, How Much Did You Miss?
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.
Former Partner's Perspective on Multicoin: Kyle's Exit, But the Game He Left Behind Just Getting Started
Why Bitcoin Is Falling Now: The Real Reasons Behind BTC's Crash & WEEX's Smart Profit Playbook
Bitcoin's ongoing crash explained: Discover the 5 hidden triggers behind BTC's plunge & how WEEX's Auto Earn and Trade to Earn strategies help traders profit from crypto market volatility.
App