Original Text of the December 5 Notice by the Seven Associations

Original Text of the “Risk Alert on Preventing Illegal Activities Involving Virtual Currencies and Related Risks”

Recently, concepts related to virtual currencies have been heating up rapidly. Some lawbreakers have taken advantage of this opportunity to hype related trading and speculation activities, disguising illegal fundraising, pyramid schemes, and fraud in the name of stablecoins, “air coins” (such as Pi coin), real world asset (RWA) tokens, and “mining.” They have also used virtual currencies to transfer the proceeds of illegal and criminal activities, seriously infringing upon the property safety of the general public and disrupting the normal order of economic and financial activities. In order to further implement the requirements outlined in documents such as the “Announcement on Preventing Token Issuance Financing Risks” and the “Notice on Further Preventing and Dealing with Risks of Virtual Currency Trading and Speculation” issued by the People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, and other departments, as well as the spirit of coordination mechanism meetings for cracking down on virtual currency trading and speculation, the National Internet Finance Association of China, China Banking Association, Securities Association of China, Asset Management Association of China, China Futures Association, China Association for Public Companies, and Payment & Clearing Association of China hereby jointly issue the following risk alert:

I. Accurately Understand the Essential Attributes of Virtual Currencies, Real World Asset Tokens, and Related Activities
Virtual currencies are not issued by monetary authorities, are not legal tender, do not have the same legal status as legal tender, and cannot be used as currency in circulation within China. Among these, “air coins” such as Pi coin lack substantial technological innovation, have no clear commercial application scenarios or value, possess non-transparent issuance and operation mechanisms, and are rife with fraud and market manipulation. Activities conducted in their name are often associated with pyramid schemes and fraud. Stablecoins currently cannot effectively meet requirements for customer identification, anti-money laundering, and other compliance needs, and are at risk of being used for money laundering, fundraising fraud, and illegal cross-border fund transfers. The tokenization of real world assets involves issuing tokens or other token-like rights and debt certificates for fundraising and trading activities, which entails multiple risks including fake asset risk, business failure risk, and speculative risk. At present, China’s financial authorities have not approved any activities related to the tokenization of real world assets.

Domestic institutions and individuals conducting activities such as fiat-virtual currency exchange, real world asset token issuance, and fundraising within China may be suspected of illegal token issuance, illegal fundraising, unauthorized public securities issuance, illegal futures business, and other illegal financial activities. Overseas virtual currency and real world asset token service providers, whether directly or indirectly, offering related services to China’s domestic market also constitute illegal financial activities. Employees of such overseas service providers who are based in China, as well as domestic institutions and individuals who knowingly or should know that they are engaging in virtual currency-related business yet provide services to them, will be held legally accountable.

II. Relevant Institutions Must Not Engage in Businesses Related to Virtual Currencies or Real World Asset Tokens
All member units must not participate in virtual currency or real world asset token issuance and trading activities within China, nor may they directly or indirectly provide related services to clients for issuing or trading virtual currencies or real world asset tokens domestically. Member banks and payment institutions must not provide services for activities involving the issuance or trading of virtual currencies or real world asset tokens within China, nor provide any form of financial service or credit support to virtual currency “mining” enterprises and projects. They must strictly conduct customer due diligence, promptly assess whether there is virtual currency or real world asset token trading or money laundering risk, ensure compliance with regulatory requirements, and take measures and report to the relevant authorities if suspicious clues are found. Member securities, fund, and futures institutions must not provide services for the domestic issuance or trading of virtual currencies, real world asset tokens, or related financial products. Member internet platform companies must not provide any form of marketing, IT, or other services for virtual currency or real world asset token issuance and trading activities domestically, and must conduct thorough compliance checks on information released via their platforms. All member units should conduct multi-faceted risk alerts and educational campaigns on virtual currencies and real world asset tokens, reminding the public to recognize risks and steer clear of illegal activities.

III. The Public Should Remain Highly Vigilant Against All Forms of Virtual Currency and Real World Asset Token Business Activities
Virtual currency prices are subject to drastic fluctuations and volatility, and are often used for speculative trading, pyramid schemes, and fraud. The public is urged to enhance their risk awareness and identification ability, safeguard their “wallets,” and avoid participating in activities related to virtual currencies, real world asset tokens, and illegal fundraising or unauthorized securities issuance in the name of virtual currency “mining.” Stay away from virtual currencies and real world asset tokens to avoid becoming involved in related illegal or criminal activities. Be cautious about joining groups that promote virtual currency or real world asset token businesses, beware of false advertising regarding historical returns, trading tips, or speculative prospects of virtual currencies or real world asset tokens, and refuse to click on links, QR codes, or other access channels related to overseas virtual currency or real world asset token trading platforms. If you discover any clues involving virtual currency or real world asset token business activities, promptly report them to the relevant regulatory authorities. If suspected crimes are involved, report them to the public security authorities without delay.

National Internet Finance Association of China
China Banking Association
Securities Association of China
Asset Management Association of China
China Futures Association
China Association for Public Companies
Payment & Clearing Association of China
December 5, 2025