China's PBOC Implements New Regulations on Virtual Currency Risks

On February 6, 2026, China's People's Bank of China (PBOC), along with seven other agencies, introduced new regulations targeting risks associated with virtual currencies. According to NS3.AI, the framework generally prohibits the tokenization of real-world assets (RWAs) within China unless specifically approved, while imposing stringent compliance and disclosure requirements for offshore RWAs. The regulations also classify stablecoins as having properties similar to legal tender, which raises concerns about foreign exchange risks. Oversight of these regulations is divided among several Chinese regulatory bodies.