On February 6, 2026, China’s top regulators released a new rule set that aims to change tokenization and real-world asset digitization. China has moved from a strict ban on cryptocurrencies. This shift draws a line between forbidden virtual currencies and controlled tokenized assets.
A Collaborative Regulatory Effort by Eight Authorities
Eight main state agencies came together. 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, National Financial Regulatory Administration, China Securities Regulatory Commission, and State Administration of Foreign Exchange agreed on a document titled “Notice on Further Preventing and Handling Risks Related to Virtual Currencies and Similar Activities” (Yinfa [2026] №42). They also shared detailed guidelines for how offshore asset-backed tokenized securities based on onshore assets can be issued and traded.
A Systematic Regulatory Overhaul
The new rules cancel the 2021 ban (Yinfa [2021] №237) on most crypto activities. The earlier ban had stopped most virtual currency actions. Now, tokenized assets made from real-world items are clearly allowed if they follow strict rules. Virtual currencies like Bitcoin and Ethereum still do not count as legal money. Yet tokenization of physical or financial assets goes forward under close supervision.
Virtual Currencies Remain Restricted, With New Technicalities
The notice states that virtual currencies have no legal tender status in China. Exchanges, fundraising by issuing tokens, and related services are not allowed. There is one detail: offshore issuance of RMB-pegged stablecoins can happen only with official approval. Mining operations are checked closely. Ads about crypto are banned. Firms must watch words like “virtual currency” or “crypto” when naming themselves or describing their work.
Tokenization of Real-World Assets: Official Definition and Scope
The new policy defines real-world asset tokenization. The process uses cryptography and digital ledgers to convert ownership, income, or other rights into tokens. These tokens can represent real property, shares in funds, receivables, or other assets. Both issuing and trading tokenized assets are under control. The work must use only approved financial systems. These may include data exchanges in Shanghai, Beijing, or Shenzhen, local asset markets, and the digital RMB system run by the People’s Bank of China.
A Clear Path for Offshore Tokenization of Onshore Assets
The rules also create a path for Chinese companies to tokenize domestic assets offshore. Different tokens fall under different regulators. Tokens that act like foreign debts are watched by the NDRC and SAFE. Tokens that act as asset-backed securities or equity fall under the CSRC. Other tokens get a mixed review by the CSRC and other bodies. This plan applies the rule that “same business, same risk, same regulation.” In short, tokenization projects must file proper documents. This rule applies whether tokens come from Hong Kong, Singapore, or elsewhere.
Filing System Balances Openness and Control
The guidelines change the old pre-approval system to a filing process. Chinese companies must submit reports, tokenization plans, and details on asset controllers to the CSRC. Any asset that is illegal, may harm national security, or is linked to disputes or criminal acts will be rejected. The list of banned assets follows similar rules to domestic asset-backed securities. The clear boundary between legal and illegal work helps control tokenization activities.
Financial Institutions Empowered to Support the RWA Ecosystem
Banks and other financial groups are not allowed to handle virtual currency transactions. They may, however, support approved tokenized asset projects. They can act as custodians, clear transactions, or manage funds. Their overseas branches may also work on tokenized assets if they follow KYC, Anti-Money Laundering, and other rules. This system works with strict risk management at the group level.
The Broader Regulatory Logic
All these documents show a split in China’s digital asset rules. Crypto activities stay firmly off limits while tokenized assets will be controlled. The rules demand approved systems and clear oversight. Mainstream banks have a role in this system. China builds a digital asset system based on real assets and controlled practices.
What This Means for Markets and Innovators
Investors, developers, and firms now have clear guidelines to work with real-world asset tokenization. A filing system, clear rules, and bank support reduce past confusion. The work must follow strict approval and use only designated platforms. This approach aims to protect against fraud, financial issues, and security risks while still using blockchain to digitize real assets.
Conclusion: Tokenization on Chinese Terms
The new rules do not simply “ban crypto again.” They mix a strict ban on virtual currencies with a controlled path for turning real assets into tokens. China does not accept cryptocurrencies as money, but a system for digitizing tangible assets is now in place. Stakeholders face both opportunities and challenges inside a clear regulatory space. The new rules set February 6, 2026, as a key date for how digital assets will be handled in China.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with nGRND.
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