Seven departments issued “Risk Tips on Preventing Illegal Activities Involving Virtual Currencies”

The Zhitong Finance App learned that on December 5, seven departments including the China Internet Finance Association issued a “Risk Reminder on Preventing Illegal Activities Involving Virtual Currency, etc.”, which mentions that member units must not participate in virtual currency or real-world asset token issuance and trading activities within the country, and must not directly or indirectly provide related services for customers to issue and trade virtual currency and real world asset tokens domestically. Member units of banks and payment institutions must not provide services for business activities related to issuing and trading virtual currency and real-world asset tokens in China, must not provide any form of financial services and credit support for virtual currency “mining” enterprises and projects, strictly carry out customer due diligence, promptly investigate whether virtual currency, real-world asset token transactions or money laundering risks are involved, ensure that the exhibition industry meets regulatory requirements, and take measures and report suspicious leads to relevant departments in accordance with procedures.

The original text is as follows:

Tips on preventing risks involving illegal activities such as virtual currency

Recently, concepts related to virtual currency have been rapidly heating up. Some lawbreakers have taken the opportunity to promote speculation on transactions, carry out illegal activities such as illegal fund-raising and pyramid scheme fraud under the guise of stablecoins, air coins (pi coins, etc.), real world asset (RWA) tokens, and “mining,” and use virtual currency to transfer illegal and criminal proceeds, seriously infringing on the property safety of the public and disrupting the normal economic and financial order. In order to further implement the requirements of the “Notice on Preventing the Risk of Token Issuance and Financing” and “Notice on Further Preventing and Handling the Hype Risk of Virtual Currency Transactions” issued by the People's Bank of China, the General Administration of Financial Supervision, the China Securities Regulatory Commission and other departments, and implement the spirit of the coordination mechanism meeting to combat virtual currency trading hype, the China Internet Finance Association, the China Securities Investment Fund Industry Association, the China Futures Industry Association, the China Association of Listed Companies, and the China Payment and Clearing Association jointly issued the following risk tips:

1. Correctly understand the essential attributes of virtual currency, real-world asset tokens, and related activities

Virtual currency is not issued by monetary authorities, is not a national legal currency, does not have the same legal status as legal tender, and cannot be used as currency in circulation within China. Among them, air coins such as Pi coins have no substantial technological innovation, no clear commercial application scenarios or values, opaque distribution and operation mechanisms, serious problems of fraud and market manipulation, and frequent pyramid scheme and fraud activities under their name. Stablecoins are currently unable to effectively meet customer identification and anti-money laundering requirements, and there is a risk that they will be used for illegal activities such as money laundering, fund-raising fraud, and illegal cross-border fund transfers. Real-world asset tokenization carries out financing and trading activities through issuing tokens (tokens) or other rights and bonds with token (token) characteristics. There are multiple risks, including the risk of false assets, the risk of business failure, and the risk of speculative speculation. Currently, China's financial administration has not approved any real-world asset tokenization activities.

Domestic institutions and individuals carrying out activities such as fiat currency and virtual currency exchange, real-world asset token issuance and financing within the country are suspected of illegal financial activities such as illegal sale of tokens and tickets, illegal fund-raising, unauthorized public issuance of securities, and illegal operation of futures business. Overseas virtual currency and real-world asset token service providers that directly or disguise use various methods to provide services to carry out related business activities within China are also illegal financial activities. Domestic personnel of relevant overseas virtual currency service providers, as well as domestic institutions and individuals that know or should have known that they are engaged in virtual currency-related business and still provide services to them, will be held liable according to law.

2. Relevant institutions shall not carry out business related to virtual currency or real-world asset tokens

Each member unit shall not participate in virtual currency or real-world asset token issuance and trading activities within the country, and shall not directly or indirectly provide related services for customers to issue and trade virtual currency and real-world asset tokens within the country. Member units of banks and payment institutions must not provide services for business activities related to issuing and trading virtual currency and real-world asset tokens in China, must not provide any form of financial services and credit support for virtual currency “mining” enterprises and projects, strictly carry out customer due diligence, promptly investigate whether virtual currency, real-world asset token transactions or money laundering risks are involved, ensure that the exhibition industry meets regulatory requirements, and take measures and report suspicious leads to relevant departments in accordance with procedures. Member units of securities, funds, and futures institutions are not allowed to provide services for issuing and trading virtual currencies, real-world asset tokens, and related financial products domestically. Internet platform enterprise member units shall not provide any form of marketing, promotion, information technology, or other services for business activities related to domestic issuance and trading of virtual currency and real-world asset tokens, and do a good job of compliance investigation of information published by the platform. Member organizations should carry out multi-faceted risk alerts and warning education on virtual currency and real-world asset tokens to remind the public to clearly identify risks and stay away from illegal activities.

3. The public should be highly alert to all forms of virtual currency and real-world asset token business activities

Virtual currency prices fluctuate greatly and fluctuate drastically. They are often used for illegal activities such as speculative hype and pyramid scheme fraud. The public is invited to effectively enhance their risk awareness and ability to recognize risks, protect their “money bags”, and never participate in activities related to virtual currency, real world asset tokens, and illegal fund-raising and illegal securities issuance activities carried out under the name of “mining” virtual currency. Stay away from virtual currencies and real-world asset tokens so as not to get involved in related illegal and criminal activities, beware of joining communities promoting virtual currency and real-world asset token business activities, be wary of false publicity containing historical earnings, trading suggestions, or speculative prospects of virtual currencies and real-world asset tokens, and refuse to click on links and QR codes containing overseas virtual currencies and real-world asset token trading platforms. If any leads involving virtual currency or real-world asset tokens-related business activities are discovered, promptly report them to the relevant supervisory authorities, and promptly report any suspected offenses to the public security authorities.

China Internet Finance Association China Banking Association

China Securities Association China Securities Investment Fund Industry Association

China Futures Association China Association of Listed Companies

China Payment Clearing Association

December 5, 2025

This article was selected from the “China Internet Finance Association Official Website”, editor of Zhitong Finance: Xu Wenqiang.