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The Wall Street Wolf Behind the Politician's Mask: How Trump Manipulated Market Sentiment with a Dual Identity
Original Article Title: Trump's Tariff Game: "Tariffs for Talks" – Power Play in Market Volatility
Original Article Author: Ac-Core, YBB Capital Researcher
1. Trade War Escalation, 24-Hour Cross-Market Flash Crash Relay Race
Image Source: Forbes
1.1 Global Financial Market Collapse!
Early on April 7, global financial markets experienced a widespread collapse as trade tensions escalated due to "tit-for-tat tariffs," causing panic selling across stocks, crude oil, precious metals, and even cryptocurrencies. During the Asian session pre-market, US stock index futures continued last week's slump, with Nasdaq 100 futures plummeting by 5%, while S&P 500 and Dow futures both saw declines of over 4%. The European markets were equally gloomy, with Germany's DAX futures dropping by nearly 5%, and Euro STOXX50 and UK FTSE index futures breaching the 4% decline mark.
The Asian markets opened to a selling frenzy: South Korea's KOSPI 200 futures plunged by 5% in the pre-market session, triggering a trading halt; within two hours of the Australian market open, the index's losses widened from 2.75% to 6%; Singapore's Straits Times Index suffered a record single-day decline of 7.29%. The Middle Eastern markets saw an early "Black Sunday," with Saudi Arabia's Tadawul index plummeting by 6.1%, while oil-producing countries like Qatar and Kuwait saw their indices drop by over 5.5%.
Commodity markets were devastated: WTI crude oil broke below the $60 psychological level to hit a two-year low, experiencing a 4% intraday decline; gold unexpectedly lost the $3010 support level, with silver's weekly losses expanding to 13%; the cryptocurrency space saw Bitcoin breaking key support levels and Ethereum plunging by 10% in a single day, shattering the myth of digital assets as a safe haven.
1.2 Impact on the Crypto Market
Short-Term Market Impact
The recent policies of the Trump administration have had a significant impact on the cryptocurrency market's volatility. In January of this year, when Trump signed an executive order calling for the establishment of a cryptocurrency regulatory framework and the study of a national cryptocurrency reserve, the market reacted positively, driving the total cryptocurrency market cap to $3.65 trillion by month-end, achieving a cumulative gain of 9.14%. However, the introduction of tariff policies in February quickly reversed the previous market trends. In particular, following the announcement on February 3 of long-term import tariffs on China, Canada, and Mexico, the cryptocurrency market experienced a significant drop in line with the stock market: Bitcoin saw an 8% decline within 24 hours, while Ethereum plummeted by over 10%, triggering $900 million in liquidations across the network and forcing 310,000 investors into liquidation.
From a transmission mechanism perspective, tariff policy impacts the crypto market through multiple pathways: first, trade frictions intensify global market volatility, driving the US dollar stronger as a safe-haven asset and prompting capital inflows into the US market; second, institutional investors may liquidate crypto assets to offset losses in other parts of their portfolios to manage risks; tariff-induced inflationary pressure may weaken purchasing power, thereby reducing market risk appetite, especially in the highly volatile crypto market.
Long-Term Potential Opportunities
Despite significant short-term impacts, tariff policy may create structural opportunities for the crypto market in the following areas:
Anticipated Liquidity Expansion
The Trump administration may implement expansionary fiscal policies through tax cuts and infrastructure investments to boost market liquidity to offset fiscal deficits or through debt monetization measures. Historical data shows that during the $3 trillion expansion of the Federal Reserve's balance sheet in 2020, the price of Bitcoin surged over 300% concurrently, indicating that a new round of liquidity injection may support crypto assets.
Enhanced Inflation Hedge Properties
Eugene Ephsteyn, Director of Trading and Structured Products at Moneycorp, pointed out that if a trade war leads to a devaluation of the US dollar, Bitcoin may serve as a hedge due to its fixed supply nature. Competitive currency devaluation triggered by tariff policies may encourage more investors to use cryptocurrency as an alternative channel for cross-border capital flows.
II. "Businessman + Dictator = Market Manipulation"
Image Source: marketwatch
2.1 Starting from the Tariff War of Trade Imbalance
In Trump's businessman mindset, the so-called "trade imbalance" is not actually a complex economic concept but more like a price imbalance between the buyer and the supplier in a procurement negotiation. Reference can be made to economist Fu Peng's explanation: Now, the buyer has invited all potential suppliers to the meeting table and said, "We need to renegotiate the terms of cooperation." Doesn't this sound a bit like centralized bidding in the pharmaceutical industry? Yes, Trump's operation is actually a typical bidding war tactic.
If tariffs are viewed as a form of "quote restriction," then the high tariffs set by Trump are actually equivalent to a psychological price set by the buyer in advance in a bid—anyone who wants to win the bid must compete below this price. This kind of setting may sound rough, even a bit impulsive, but it is very common in many actual procurement negotiations, especially in government-led large-scale centralized procurement projects.
Some have questioned whether this was a decision Trump made on the fly by pulling up an Excel sheet temporarily, but that's not the case. His strategy is not that complicated; essentially, it's about artificially setting a "threshold price" to force suppliers to come to the negotiating table. The most direct effect of this move is that whoever doesn't come to negotiate is automatically excluded, because if you don't accept this "maximum price offer," then you will only be taxed under the worst conditions, essentially relinquishing your market access eligibility.
At this point, countries wishing to participate in this "bidding" can only sit down and negotiate with the United States—how tariffs will be reduced, how product quotas will be allocated, and how rules will be changed. While it may seem like a trade confrontation, it's actually more like a round of commercial negotiations driven by strategic gaming. This is why Citibank's Asia Trading Strategy Director, Mohammed Apabhai, clearly stated in his report: what Trump is currently using is a typical negotiation tactic.
For those small and medium-sized suppliers, they actually don't have much room to maneuver, as they find it challenging to negotiate with the purchasing side on their own. Therefore, the purchasing side (i.e., the United States) uses the concessions made by these small suppliers to further pressure larger suppliers. This is a strategy of first breaking through the periphery and then encircling the core. In simpler terms, it's using concessions from the periphery to force key players to compromise.
So, in a sense, Trump's so-called "tariff war" is not entirely about going to war but creating a situation where "negotiation is a must." It's about forcing you to negotiate or forcing you out of the game; this is the approach he truly wants to play.
2.2 "Dictator"
Although the United States has a robust constitutional system and a democratic tradition, during Trump's presidency, many of his words and actions have been widely criticized as having a tendency towards a "dictator." This assessment is not groundless but is built on his multiple challenges to institutional norms, democratic mechanisms, public opinion environment, and power structure. While Trump did not completely break the U.S. institutional framework, his actions exemplified typical dictator characteristics—breaking institutional boundaries, suppressing dissent, and strengthening personal authority.
Undermining institutional checks and balances, circumventing congressional centralized power
During Trump's tenure, he frequently used executive orders to advance policies, including the construction of the U.S.-Mexico border wall, issuing the "Muslim Ban," and reducing environmental regulations, among other significant decisions. He even declared a "national emergency" to tap into military funding when Congress refused to allocate funds for the border wall, bypassing legislative constraints. This behavior undermined the principle of separation of powers in the U.S. Constitution, expanding executive power unprecedentedly, showing clear signs of centralization.
Attacking press freedom, creating an "enemy" style public opinion environment
Trump often refers to the media that criticizes him as "fake news," and even uses the term "enemy of the people" to refer to traditional news organizations such as CNN, The New York Times, and others. He repeatedly attacks journalists, TV hosts, and commentators on Twitter, urging his supporters to harbor animosity towards the media. In political communication studies, this delegitimization of the media is one of the propaganda control strategies commonly used by authoritarian leaders, aiming to weaken the public's trust in diverse information sources and establish an "information monopoly."
Interference with Judicial Independence, Emphasis on "Loyalty over Expertise"
Trump has frequently attacked the judicial system in public, especially when courts rule against his policies, sometimes directly criticizing judges by name. For example, he referred to a judge opposing his immigration policy as a "Mexican," implying that the judge's ruling was unfair. Furthermore, in senior appointments, he often prioritizes loyalty over professional competence, frequently replacing key positions like the Attorney General and FBI Director, severely undermining judicial independence.
Refusal to Accept Election Results, Undermining Peaceful Transfer of Power Tradition
Following the 2020 presidential election, Trump vehemently refused to concede defeat, alleging that the election was "stolen" and repeatedly demanding states to "recalculate" or "overturn the results." More significantly, his remarks ultimately led to the January 6, 2021 Capitol riot, where a large number of supporters stormed the Capitol, attempting to prevent the certification of Biden's victory. This event was widely labeled by the international media as the "darkest day of American democracy," and it was a clear attempt to interfere with the peaceful transfer of power, displaying characteristics of authoritarianism.
Advocating Personality Cult, Creating a "Leader-Only" Narrative
Trump promoted a highly personalized ruling style within the party and government, demanding absolute loyalty. He frequently praised himself at rallies, describing himself as the "greatest president in history" and implying that the country would decline without him. This political discourse created a "savior" type of personal myth, weakening the presence of collective governance and institutional norms, making it susceptible to slipping into personality cult and populism.
2.3 Trump's Double Game: Not a President but a "Stock Market Guru"
Donald Trump, the billionaire from a real estate empire, surprised many when he successfully won the U.S. presidency in 2016 as an "atypical political figure." Looking at his governance style and political behavior, combined with the hypothetical positioning of Trump as a "businessman" and "dictator" mentioned earlier, it is solely a personal opinion that Trump is not a true "president" in the full sense, but more like a "super trader" who uses power, public opinion, and the financial market as tools: a "stock market guru" who turns the White House into a Wall Street trading room to profit from market volatility. Therefore, from the perspective of a "trader," reinterpreting the unorthodox Trump, all his unconventional operations seem to become rational.
Businessman Nature: Viewing the Presidency as a "Super Trading Platform"
Trump is a typical businessman-style political figure. He has been in the business world for decades, adept at creating topics, controlling public opinion, and speculation. He does not govern the country according to political logic but views American and global affairs from a "business perspective." His governance is not for institutional perfection or global leadership but for pursuing "transactional outcomes," emphasizing "America First," fundamentally "profit first."
Moreover, Trump has also shown a strong "dictator" characteristic, especially in the way of guiding public opinion and centralizing power. He controls the information flow, eagerly publishes market-shaking comments through Twitter, such as "We are about to reach a major agreement with China" or "The Fed should cut interest rates," often causing significant fluctuations in the financial markets. For an ordinary president, these remarks may be diplomatic postures; but for a leader who acts with "market manipulation thinking," these are precise tools for controlling market sentiment.
Dictatorial Language Artistry: Intervening in Market Sentiment through Information
If a core feature of a dictator is "control and utilization of information," then Trump is a master in modern society who "shocks the market" through information. He does not need a censorship system or media shutdown but becomes the strongest source of information in the market by creating uncertainty and confrontational emotions.
In the Twitter era, he almost daily releases "market-impactful remarks" like a financial anchor:
"China will sign a huge trade agreement";
"If the Fed does not lower interest rates, the US will lose its competitiveness";
"Oil prices are too high, this is OPEC's fault";
"The border wall will be built, and the market should feel reassured".
These statements themselves do not constitute formal policies but frequently lead to sharp fluctuations in the Dow Jones, S&P 500, gold, and oil markets. The pace of information release, the emphasis of language, and even the timing selection all bear strong traces of market manipulation.
Even more noteworthy is that he repeatedly "shifts" at different times, praising the progress of US-China negotiations today but announcing the imposition of tariffs tomorrow; in the morning, he says the Fed should cut interest rates, and in the afternoon, he claims the US dollar is too weak. This kind of back-and-forth is not political oscillation but precise control of market sentiment, turning fluctuations into controllable harvesting opportunities.
Family Capital Relationship Network: An Arbitrage Channel Built on Power and Information
Trump's business network did not cease after being elected President; instead, it was granted more "legitimacy" and influence. His family members, such as Kushner and Ivanka, remain deeply involved in political and business affairs, holding direct influence in various fields such as Middle East policy, tech investments, and real estate. News about his family trust funds and close friends' investment groups exploiting policy foresight for financial arbitrage has been repeatedly disclosed:
Prior to the implementation of Trump's large-scale tax cuts policy, some funds closely related to him positioned heavily in US stocks;
Whenever Trump hinted at possibly releasing strategic oil reserves or initiating military actions, the energy market always saw suspicious trades in advance;
During the stages of the trade war with China, around Trump's remarks regarding "reaching an agreement," the market's reaction was highly sensitive, often experiencing short-term rallies.
Although insider trading cannot be directly confirmed, his control over information and the concentration of policy decision-making power have given the "arbitrage channel" significant practical value. The President is no longer a representative of the system but rather a "trader" with unlimited privileged information and discourse power.
"Create Chaos—Steer Direction—Reap Results": a typical tactic of market manipulators
Traditional presidents seek stability and continuity, while Trump seems to be constantly "creating chaos." He excels at inducing market panic, then guides market recovery through reassuring statements—a whole process resembling a swing trade:
Fire at Iran—market panic—signals negotiations the next day—market rebound;
Announce escalating tariffs on China—tech stocks plummet—a few days later say "China has been very cooperative"—recovery;
During the virus outbreak, claim the situation is "under control"—brief stock market rebound—subsequent information reversal leads to another decline.
Behind these seemingly casual remarks lies a high degree of emotional guidance and market rhythm coordination. He understands the expected public reaction and acts like a super market operator, leading the collective psyche of global investors.
Post-Trump Era: Personal Brand Continues to Influence the Market
Even after leaving office, Trump still has the ability to influence the market rhythm. With a single announcement of "possibly running again," stocks related to energy, military, social media, and conservative tech immediately react. Taking Trump Media Group (Truth Social) going public through a SPAC as an example, despite lacking substantial profitability, the stock experienced a significant surge—capital markets see "Trump" himself as a speculative target, showcasing the branding and financialization of his persona.
3. The U.S.-orchestrated Cryptocurrency Market: A Collusion of Capital and Power
Image Source: Al Jazeera
3.1 Power Reconstruction: Trump Doesn't Want Bitcoin, He Wants a "Americanized" Bitcoin
The current cryptocurrency market is no longer the haven of decentralization ideals, but a new financial colony manipulated by U.S. capital and power in concert. Since the approval of the Bitcoin spot ETF, Wall Street giants like BlackRock, Fidelity, MicroStrategy, and others have rapidly built up BTC spot positions, locking the Bitcoin that originally belonged to the tech community in Wall Street's vaults. Financialization and politicization have become the dominant logic, and the price of crypto assets is no longer determined by market behavior but relies on the Federal Reserve's rate hints, the SEC's regulatory dynamics, and even a presidential candidate's verbal commitment to "supporting crypto."
The essence of this "Americanization" is to re-embed a decentralized asset into a center—the American financial hegemony system. ETFs have made the crypto market rise and fall in harmony with the U.S. stock market. Behind the candlestick chart lies the pulse of the U.S. bond market fluctuations and CPI data. Once seen as a symbol of freedom, Bitcoin is increasingly resembling an "alternative Nasdaq constituent stock that belatedly reflects the Fed's intentions."
3.2 Bitcoin's Strategic Value: Not a Sovereign Reserve Asset, But the U.S. Dollar Hegemony's Gray Spare Tire
The Trump era laid the groundwork for Bitcoin's national financial positioning. Instead of directly declaring support as a traditional politician would, he tacitly allowed hash power migration, relaxed regulatory uncertainties, and supported mining infrastructure, integrating Bitcoin into America's strategic financial resource pool. Amid expectations of a weakening traditional U.S. dollar credit system, Bitcoin is gradually assuming the role of a "non-sovereign reserve asset," being shaped into a safe haven alternative in financial turbulence.
· This deployment is very American: silent annexation without direct conflict. The U.S. has dominated much of Bitcoin's financial infrastructure (Coinbase, CME, BlackRock ETF) and further gained control of on-chain settlement capabilities through the U.S. dollar peg of stablecoins (USDC). When global turmoil, fund safe havens, and trust shifts occur, the U.S. has quietly obtained this "dollar alternative in a de-dollarizing world."
· Perhaps Trump sees further: Bitcoin's belief is unrelated to him; instead, its financial attributes have been tamed into another "currency sovereignty tool" for the U.S. In scenarios where the dollar is constrained, SWIFT is problematic, and fiat currencies devalue, Bitcoin becomes a contingency plan for maintaining power.
3.3 The Truth Behind the Scenes? Trump is Not Just a President, But Also a "Super Whales" in the Flow-based Financial Battlefield
First of all, understand a fact that in any financial market, 90% of the time is dominated by oscillation, and only "big fluctuations can earn big money."
Therefore, considering all viewpoints, Trump superficially appears to be a president, but in reality, he is more like a flow-driven super trader, with the sole purpose of: creating market fluctuations and controlling market fluctuations, all just to earn profits from fluctuations.
Trump is adept at influencing market direction through information, flow, and influence, earning profits from market fluctuation trends as a "speculator." While supporting Bitcoin to become a "strategic reserve of the United States," he also absorbs market liquidity by launching the meme token $TRUMP, which is a market manipulation strategy of "information intervention + liquidity vampirism."
What's even more brutal is that the trend of the crypto market is increasingly dependent on US political games: the Fed's stance, SEC's actions, presidential candidate speeches, congressional hearings emotions... The decentralized crypto system has been deeply intertwined with US dollar policy, US stock structure, and US big capital logic. Today, the crypto market has become an "extended battlefield" of the American financial system.
We are also witnessing a cruel reality: the market seems free but has long been orchestrated; the price seems to fluctuate, but behind it is the one controlling the information and flow setting traps.
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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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