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CZ Fireside Chat Full Transcript: HODL Strategy Challenged, Survival Guide in a Volatile Market
Original Title: "Full Text of CZ Fireside Chat: HODL Strategy Challenged, Survival Rules in Market Volatility"
Original Author: Zen, PANews
In this in-depth conversation within the Hong Kong community, CZ publicly analyzed for the first time the development bottlenecks of BNB Chain, the community controversy surrounding MEME coins, and his expectations for the industry's "healthy ecosystem." He emphasized the need for a balance between "making quick money and slow money," outlining a survival rule that encompasses both risk and opportunity for investors.
On the evening of April 6, CZ unexpectedly appeared at the BNB Chain Super Meetup in Hong Kong, engaging in a candid fireside chat with community representative "Brother Big Aussie." Faced with the current industry situation of MEME coin frenzy, faith division, and market volatility, CZ bluntly stated that "meme coins hype should not be the only thing in the crypto world."
"If You can't hold, You won't be rich" — this classic quote from Binance founder CZ has influenced countless investors. However, in the new cycle, the HODL strategy seems to be facing a challenge. In this in-depth conversation within the Hong Kong community, CZ publicly analyzed for the first time the development bottlenecks of BNB Chain, the community controversy surrounding MEME coins, and his expectations for the industry's "healthy ecosystem." He emphasized the need for a balance between "making quick money and slow money," outlining a survival rule that encompasses both risk and opportunity for investors.
Brother Big Aussie: I have known CZ online for many years, but this is my first time meeting him in person. Meeting an online friend, I am called Brother Big Aussie, and I entered the crypto industry in Australia in 2016. But I feel that the most correct thing I have done in the crypto world is to trade on the Binance platform. I joined at the very beginning, and when it was ICO time, I bought some coins and I still hold them today. So today, I am very honored to have this opportunity to interview CZ on behalf of the community.
I have collected many questions from the community, some of which I have not had time to organize... And because time is short, I have tried to select some slightly provocative questions as much as possible.
Brother Big Aussie: First of all, many people feel that this cycle is very different. Whether it is VC coins slowly declining, MEME coins taking off, or even former U.S. President Trump starting to support cryptocurrency, it seems that there has been a certain degree of faith collapse in the entire cycle. So CZ, how do you view the current market situation?
CZ: Let me first ask, how many of you are into MEME coins through Dogecoin? (Many people raise their hands). Sorry, I might make some of you upset with what I'm about to say next. I think being into Dogecoin is fine, but it shouldn't be the only thing in the crypto space. The current craze around Dogecoin is too strong, and it's not very healthy for the entire industry.
The industry should have people looking for the next hidden gem, enthusiasts for high-growth tokens, as well as long-term builders. However, all the attention is now solely on MEME coins, but even these MEME players are quite disappointed because they can't find tokens that skyrocket tenfold or more every day. The long-term builders are being ignored, and they find it uninteresting. They don't know which token to list on their exchange. So, the entire community is not particularly healthy. I think we still need some groundbreaking methods.
Australian Master: Have you found any groundbreaking methods now?
CZ: I think it's a process. It's not something that can be achieved overnight. For us, in the long run, we still need to support building and engaging in long-term development, which will be more effective. There must be real users, real revenue, actual profits, and users benefiting for the token price to be sustainable... I believe both those seeking quick gains and those seeking gradual gains should exist. But those seeking gradual gains may not be receiving enough support right now. So, what we're doing this afternoon with the MVB, we're also investing, and personally, I communicate with developers.
Australian Master: I consider myself a 'HODLer' as well. In fact, many people... those who truly understand the value and hold onto their coins, in the early days we did hear a lot of your insights, which were very impactful. Because you once said, "If You can't hold, You won't be rich," and my friends and I also took that as a motto. In the past few cycles, we did indeed make significant gains. But in this cycle, we also found ourselves being penalized. Do you think we should continue to 'HODL' at this point?
CZ: I think if you adopt this approach, you should still consider the technical or fundamental aspects. You can't just hoard every token in the market with millions of choices. Most tokens may eventually go to zero... Some do have fundamentals and practical applications, and you can hold them long term.
Australian Master: So, do you think besides Bitcoin, there are some other projects worth trying, that can outperform Bitcoin?
CZ: I think so far there are still quite a few projects that have outperformed Bitcoin. Although everyone holding Ethereum may not be very happy right now, Ethereum has outperformed Bitcoin since the beginning. BNB has also outperformed both Bitcoin and Ethereum from the beginning up to now (here, CZ is referring to the period after the creation of these two tokens outperforming Bitcoin over the same period, it should not be a comparison to the issuance price of Bitcoin). However, Bitcoin's current status is as a reserve asset, and in the long run, holding Bitcoin will still appreciate. However, there are still dozens, or even hundreds, of coins that could potentially outperform Bitcoin.
Australian Brother: That's more than I imagined. I thought maybe only a few?
CZ: Bitcoin has a very high market capitalization, so even with a hundredfold increase, it is still very difficult. Therefore, there are some coins with good fundamentals that have the opportunity to outperform Bitcoin for a period of time. But to seize these opportunities, you still need awareness to be able to discover and persevere.
Australian Brother: What are your expectations for BNB? Recently, some articles suggest that BNB should be valued at over $3000.
CZ: The article was probably written by Hash Global. They are long-term supporters, predicting BNB would reach $40 when it was at $6, $140 when it was $40, and then $1000. His research on BNB may be even more profound than ours. I think the specific value will be determined by the market. Our focus is still on expanding the use cases of BNB, whether on centralized exchanges or DEXs. The more use cases there are, the higher the value of BNB. Whether it's on the Binance Chain or other chains, we are working hard on this. Our main goal is to have more users use BNB. We have made a lot of efforts in various countries offline and online in terms of application scenarios.
We are also investing in DeFi, NFTs, and GameFi, hoping to have more projects on the BNB Chain... Some countries have also approached us, saying they want to use BNB as their nationally recognized digital currency, and so on.
I think this model is viable, and all of this is gradually progressing. We have no secrets; it's just a matter of doing things well and increasing use cases.
Australian Brother: Where do you think BNB will go?
CZ: As for how high the price of the digital asset will rise, that's hard for me to say, and it's not something I can control. I can only say that we continue to build the ecosystem to make more people willing to hold BNB.
Master Aussie: Speaking of BNB Holders, there has been a recent saying — BNB whales are retirement homes, the benefits are too good, especially after each new coin is listed, whales receive a lot of benefits, then dump the price, and finally retail investors buy the dip... Is this situation not ideal?
CZ: I believe the more BNB holders, the better. The more people retire with BNB, the better, as BNB is limited in supply. It's better to have more people holding BNB, and the entire ecosystem will thrive. Of course, some say holders are not doing anything, but I believe holding BNB is a form of action. In fact, it's because of these holders that BNB is also very resistant to price drops, so we should be grateful to these retirees holding BNB.
Master Aussie: Next, let's ask a question about BNB Chain. In the past, we've seen BNB Chain do a lot, striving to create an artificial bull market. Has BNB Chain reached the height you expected?
CZ: To be honest, I think it's a bit below the mark. I think BNB Chain hasn't done enough in the entire ecosystem. Back when I was doing Binance CEO duties... I spent more time there. As for this chain, we didn't want to develop it in a specifically planned way, but rather let the community take it forward. In the past one or two years, I personally spent more time dealing with matters in the United States, so the attention to BNB Chain was not enough. This also resulted in the fact that although meme coins have been popular for the past year, BNB Chain has basically not participated.
BNB Chain has slightly warmed up in the short term, but the extent is still far from enough. I think no matter what the next hot trend is, such neglect will not happen again, and the entire BNB Chain community will definitely seize the opportunity. There are many things to do, and I believe that AI, DeSci, and other fields will develop well in the future.
To be honest, when BNB Chain started, resources were comparatively limited, and the initial attention was not as high as Ethereum's. In the past year or so, I myself have been busy dealing with some compliance or other matters in the United States. However, the current development of BNB Chain is still promising, but the full potential has not been fully realized. Moving forward, we will further invest in infrastructure, DApps, and DeFi. This ecosystem cannot be built overnight and requires continuous effort. We also hope that more developers will be willing to join BNB Chain, and I believe there will be more opportunities in the future. When I was meeting with the 16 projects in the MVB today, there were all sorts of ideas that could be implemented.
Oz Master: Some time ago, you did a lot in the meme field and also studied it. Moving back to meme coins, like the recent PVP. Many people think it's a short-term craze, while others think it's a community trend. What's your take?
CZ: I can tell everyone that my study in the meme field has been somewhat unsuccessful and has caused many problems for the community. Because of my own lack of understanding, when everyone said, "You should post a dog photo," I thought about whether posting a dog photo could attract some traffic, generate some buzz, and be fun. But later I discovered a few mistakes, including feedback from the community that once I post a few photos, everyone knows that there will certainly be hundreds or thousands of meme coins being launched simultaneously, leading to a very serious PVP (purchase of these coins against each other).
After causing the PVP, the community wanted me to pick one (meme coin), but this was quite difficult. I felt that it shouldn't be me picking, but rather the community should decide. I believe meme coins have their community enthusiasm, but they come and go quickly. The sustainability will depend on how the community evolves later on. In principle, we (Binance) will support something with high community enthusiasm, but we will also consider its legality, compliance, and value.
As for whether meme coins will be as hot as they used to be in the future, I'm not so sure. Many people talk about how Solana has many meme coins with a market cap of over 1 billion USD, but on the BNB Chain, we haven't seen that yet. However, at this stage, can Solana still produce another "1 billion market cap"? I don't know; I think it's quite difficult. So, we will continue to support the community. If the community's enthusiasm is there, we will support it, and if the community shifts to something else, we will also shift.
My approach is to always strive to be a good builder, a true long-term builder. I will also interact with the community; I will also interact with fun projects. As for how far this wave of meme coins will go, I really can't see clearly. I'm personally not much of a trader; I don't buy meme coins, and I haven't bought any NFTs. I strongly support this industry; I want to build its infrastructure, and I have great confidence in this foundation, but I am not the kind of person who buys, sells, or speculates.
Oz Master: I see you are often on Twitter, looking at the advice or feedback people give you. Will you take everyone's advice?
CZ: I currently have more time, so I spend more time on Twitter. Of course, it depends on the situation, like today when I have to attend a conference, my interaction time (on Twitter) will be less. Both positive and negative feedback are normal. I personally don't mind too much but look to see if it's constructive. If it's abuse or misinformation, we may clarify to some extent. I prefer to hear the community's actual thoughts, whether it's praise or criticism; it all helps improve. We will take them in, and some of the suggestions we see are quite (constructive). I do read a lot on Twitter, but I'm not very active in WeChat groups.
Oz Master: When you see negative comments on Twitter, do you feel upset?
CZ: Actually, I don't. I have thick skin. When I see criticism, I believe I shouldn't take it too personally. At the same time, I need to calmly understand and learn why others are criticizing, and grasp the essence of their criticism. So, we don't need to take ourselves too seriously. Whether others insult or praise you, don't pay too much attention to it.
Oz Master: A few final questions: Is now a good time for newcomers to enter the market? How can they mitigate risks?
CZ: I think it's never too late to enter the market, but it depends on how you enter. The most important thing is to have a basic understanding of the project and not fantasize about getting rich overnight. For newcomers, it's better to focus on fundamentals. Things that increase tenfold or a hundredfold in one night also lose value quickly. Newcomers should also not put too much money in at the beginning. Start with a small amount of investment, which will make the outcome easier to accept. Consider investing in batches, use DCA (Dollar-Cost Averaging) method, choose some mainstream coins, and avoid going all-in. Also, keep a balanced mindset. Once you enter the market, be prepared for its fluctuations and don't be affected by short-term ups and downs. The industry is still in its early stages and needs time to develop. If you believe in its long-term value, you can hold on. In the long run, there is no problem with the industry's future development, but in the short term, the volatility is very strong, so everyone must pay attention to the risks.
Oz Master: What book are you reading now?
CZ: I'm reading a book about Nvidia, titled "The Nvidia Way." I think this book is well-written, and it shows how others have built their businesses.
Oz Master: OK, our time is almost up today. Do you have anything else you want to say to the community?
CZ: I just want to tell everyone to pay attention to fundamentals and long-term development. Short-term speculation is fine, but evaluate the risks yourself. The cryptocurrency industry is highly volatile, especially DeFi, Meme coins, and such, which are not very stable. I hope everyone can participate in a healthier and more rational way. We will continue to invest in the industry to provide more support and services to the community.
Oz Master: Alright, thank you, CZ. That's about it for today. Thank you very much for accepting the interview.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of 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, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely 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.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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Foreword: Today, the People's Bank of China's website published the "Notice of 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, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely 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.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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