The People's Bank of China and eight other departments have issued a notice on further preventing and addressing risks related to virtual currencies.

The People's Bank of China and eight other departments have issued a notice on further preventing and dealing with risks related to virtual currency. Activities related to virtual currency are considered illegal financial activities. Conducting exchange transactions between legal tender and virtual currency within the country, exchanging virtual currencies, acting as a central counterparty for buying and selling virtual currencies, providing information intermediaries and pricing services for virtual currency trading, token issuance financing, and trading of virtual currency-related financial products are all suspected of illegal activities such as illegally issuing tokens or tickets, unauthorized public offerings of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, all of which are strictly prohibited and will be decisively 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. Stablecoins pegged to legal tender currencies indirectly perform some of the functions of legal tender currencies in circulation. Without approval from relevant departments in accordance with the law, no domestic or foreign entity or individual may issue a stablecoin pegged to the Chinese renminbi overseas.