China’s Updated Rules Change Tokenization and Asset Digitization Policy
On February 6, 2026, China’s banks and regulators shifted rules with eight authorities working as one. The People’s Bank of China, China Securities Regulatory Commission, and National Financial Regulatory Administration joined with others. They released new papers that change the rules on digital money and on tokens that show real assets.
Beyond a Crypto Ban: Clearing Up the Rules
The new paper, titled “Notice on Further Preventing and Handling Risks Related to Virtual Currencies and Similar Activities” (Yinfa [2026] №42), comes with a guide for tokenized notes that tie to real onshore assets. This guide replaces the old strict rules in the 2021 “924 Notice” (Yinfa [2021] №237). The 2021 rule had set a ban on most digital coins, but the 2026 update now sets clear norms for tokens tied to real assets.
Virtual Currency: Ban Remains but with a New Twist
The rules say that digital coins like Bitcoin, Ethereum, and USDT cannot be used as money. Trades that change government money into digital coins, issuing tokens without a permit, or promoting these coins stay banned.
A small change comes with stablecoins that copy the value of the Chinese yuan. The new rules declare that stablecoins issued outside China cannot move ahead without a permit. This offers a clear, guided path for these coins to exist.
Mining for digital coins stays under tight watch. Firms must not put digital coin work into their business names or descriptions.
Real-World Asset Tokenization on the Rise
For the first time at this level, the rules set clear terms for converting ownership rights in physical assets into digital tokens. This method makes the buying and selling of these tokens possible on set platforms.
Unlike digital coins, tokens that show real assets can work if they follow strict checks and run only through approved systems. The rules hint that big groups like the Shanghai Data Exchange, Beijing International Big Data Exchange, Shenzhen Data Exchange, local asset markets, and groups connected with the digital yuan will be part of these systems.
New Rules for Offshore Tokenization of Chinese Assets
The rules now give a path for tokens backed by Chinese assets to be issued abroad. The system splits oversight by the type of token:
• For tokens that look like debt, the National Development and Reform Commission and the State Administration of Foreign Exchange stand by.
• For tokens that look like stocks or asset notes, the CSRC keeps watch.
• For mixed tokens, the CSRC teams up with others on the job.
This method makes sure that tokens showing China’s onshore assets follow our laws, even if they are issued abroad.
A Filing System for Issuing Asset Tokens Offshore
The guide also lists a filing process for tokens that link to onshore assets but are given out abroad. Firms must send in project files and plans to the CSRC.
The rules also hold a list of items that will not be allowed. These include tokens tied to risks for national safety, links to crime, legal fight issues, or items banned by onshore asset rules. This measured plan shows that regulators want to build token work that follows rules while keeping the market safe.
The Role of Banks in the New Token World
Article 6 makes it clear that banks cannot support digital coins in accounts or in settling trades. They can, however, help out with approved token projects. Even banks going abroad may work on these token projects if they follow strict checks on anti-money, customer rules, and risk controls set by their main offices.
Banks and custodians play a key role in creating trust and building the work needed for token projects on real assets.
A Clear Line: Separating Crypto from Real-World Tokens
These papers show that China now treats digital coins and asset tokens as two different areas. Digital coins stay tightly controlled because of concerns around fast, risky trades and money safety. In contrast, tokens that show real assets are seen as sound work that can run if they follow clear rules.
If you hold Chinese assets or plan a token project, these updated rules guide you with clear lines. The new regulations explain who does what and how to file tokens in a way that keeps work flowing while keeping checks in place.
China now signals that while digital coins are kept in check, token work on real assets can grow if it follows set rules and ensures money safety.
For more news on asset tokens and new finance projects, follow WuBlockchain on Twitter and Telegram.
—
📝 About This Article
This article was generated by Hivebox AI in collaboration with nGRND.
—
⚠️ Disclaimer
This content is for informational purposes only and does not constitute financial or investment advice.
Please consult with a qualified financial advisor before making any decisions related to investments, markets, or assets.
—
Note on Accuracy & Liability
While we strive to provide accurate and up-to-date information, neither Hivebox AI nor nGRND guarantees completeness, reliability, or suitability.
Use this content at your own risk. Neither party assumes liability for any losses you may incur.
—
Thank you for reading.
