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UNI Burn Proposal Vote, Lighter TGE Outlook, What's the Topic of Conversation in the Global Crypto Community Today?
Publication Date: December 19, 2025
Author: BlockBeats Editorial Team
Over the past 24 hours, the crypto market has unfolded along multiple dimensions. The mainstream discussion has focused on the issuance pace and buyback strategy of the Perp DEX project, ongoing debates surrounding the timing expectations of Lighter's TGE and whether Hyperliquid's buyback is squeezing long-term development. In terms of ecosystem development, the Solana ecosystem has seen a real-world implementation attempt of DePIN, while Ethereum is advancing DEX fee structure changes and AI protocol layer upgrades simultaneously. Stablecoins and high-performance infrastructure are accelerating their integration with traditional finance.
I. Mainstream Topics
1. UNI Burn Proposal Enters Final Vote: Governance Alignment or Narrative Repair?
Uniswap founder Hayden Adams' "Unification" proposal has entered the final governance voting stage, with voting set to commence on the evening of December 19 and run until December 25.
The proposal plans to burn 1 billion UNI tokens, while simultaneously activating the v2, v3 mainnet fee switch (and Unichain fees), and through the Wyoming DUNA legal structure, aims for a clearer alignment of Uniswap Labs with protocol governance at a legal level.
Controversy within the international community is not focused on "whether to burn," but rather points to a change in the nature of governance itself: some voices question whether this is a carefully designed "governance optics" move, arguing that Labs is reasserting dominance over the agenda at a critical juncture, weakening the DAO's independence; supporters emphasize its potential for MEV internalization and fee redistribution, seeing it as a necessary step for Uniswap to move towards a sustainable token economy.
Others take a more cautious view, pointing out that Uniswap Labs has already captured a significant amount of economic value, in contrast to protocols like Aave gradually redirecting income back to the DAO, suggesting a rational assessment of this governance adjustment under such a "historical burden." Overall, the proposal is seen as a significant milestone in Uniswap's economic model transition, but it also once again exposes the ongoing blurring of boundaries between Labs and DAO in the top DeFi projects.
2. LIDO Valuation Debate Intensifies: Governance Token Paradox of High TVL and Low Market Cap
As Ethereum's largest staking liquidity protocol, Lido currently holds roughly a 25% market share, with a TVL exceeding $260 billion, annualized revenue of around $75 million, a treasury size of approximately $170 million, but its governance token LDO's market cap has fallen below $500 million, sparking widespread community questioning.
The discussion is centered around a central issue: whether a governance token still has a reasonable valuation basis in the absence of dividends and the inability to directly capture cash flow.
Some opinions bluntly state that LDO's intrinsic value is close to zero, believing that there is almost no direct correlation between protocol revenue and token holders; others attribute the continuous price weakening to the decreasing ETH staking APR, intensified staking competition, and the anticipated future market share decline.
A more radical analogy describes Lido as the "Linux of the crypto world," high in utility but lacking value capture. From a multi-faceted perspective, the only repeatedly mentioned variable is the buyback mechanism possibly launching in Q1 2026 and the structural changes related to an ETH ETF after the v3 upgrade.
In the overall debate, Lido's TVL-to-market cap ratio has reached approximately 52:1, once again highlighting the long-term misalignment of DeFi governance tokens between "infrastructure status" and "value capture ability."
3. CZ Retweet on Privacy Transfers Discussion: On-Chain Transparency, Becoming a Payment Hurdle?
Binance's former CEO CZ retweeted Ignas's post on the privacy issue of crypto payments, pointing out that current on-chain transfers fully expose transaction history. In the short term, users can only temporarily avoid tracking through centralized exchanges, but this is clearly not a long-term solution. The retweet quickly sparked a discussion, shifting rapidly from "is privacy important" to "whether viable tools already exist," evolving into a centralized showcase of privacy solutions.
Many projects and supporters took the opportunity to recommend various solutions, including Railgun, Zcash, ZK-based stablecoin solutions, UTXO-based chains, emphasizing low cost or native privacy advantages. Some users, starting from their daily payment experience, jokingly pointed out that in the current transparent ledger structure, buying a cup of coffee with cryptocurrency is almost equivalent to publicly disclosing their entire financial status.
CZ's retweet further amplified the volume of discussion, spreading this topic from the technical circle to a broader audience of users involved in transactions and payments. Overall, this discussion once again highlights the increasingly evident tension between completely transparent on-chain design and real-world payment scenarios.
4. Validation Node Performance Debate: Data or Narrative?
The debate over Ethereum's execution clients' performance has continued to intensify over the past day. The new client Tempo claims to be the "fastest execution client," but community test data shows that its performance is only about one-tenth of Nethermind's, leading to widespread questioning of its advertising authenticity.
The discussion quickly expanded from a single project to a more general question: in the node and Layer2 ecosystem, should performance representation be based primarily on marketing narratives, or must it be strictly based on reproducible data.
Some developers emphasize that public benchmark testing and real-world operational environments should be the criteria for judgment, opposing vague or selective data disclosure. Some also took the opportunity to discuss Ethereum client diversity, pointing out the trade-offs in performance, stability, and maintenance cost among different languages and implementation paths.
Overall, this debate reflects that validators and the infrastructure community's patience with the "performance myth" is waning, and the market is gradually demanding a shift back to verifiable engineering discussions.
II. Mainstream Ecosystem Dynamics
1. Solana: Energy Company with $3 Billion Annual Recurring Revenue Enters DePIN
Energy company Fuse Energy announced the completion of a $70 million Series B funding round, led by Lowercarbon and Balderton, valuing the company at $50 billion. Its disclosed Annual Recurring Revenue (ARR) has reached $3 billion. Fuse stated that it would accelerate the marketization of new technologies through the DePIN model while enhancing its operational efficiency.
In related discussions, some views suggest that this case signifies that large enterprises with mature cash flows are starting to systematically adopt DePIN, kickstarting a supply-side flywheel through token incentives, reducing payment and geographical frictions, and compressing expansion costs. This may have spill-over impacts on the crypto industry in the next few years. Some community members question how DePIN specifically enhances business practicality, believing that its effectiveness still needs validation through actual execution. Overall, this event is seen as another signal of the Solana ecosystem attracting real business participants in the DePIN direction, reinforcing the imagination space where energy and crypto infrastructure converge.
2. Ethereum: DEX Fee Landscape Changes Alongside AI Protocol Layer Upgrade
In the DEX field, the latest data shows that Curve's share of Ethereum DEX fee revenue has significantly increased, approaching or even temporarily surpassing Uniswap. Community discussions point out that Uniswap's fee share has noticeably declined compared to last year, while Curve has rapidly rebounded from its previous low levels, seen by some as a representative case of DeFi fee structure recovery in 2025. There are also reminders that veCRV holders' actual returns have not improved in sync, and there is still a structural mismatch between governance tokens and protocol income.
Meanwhile, the ERC-8004 (Trustless Agents) protocol is set to launch on the Ethereum mainnet on January 16th. The proposal was introduced in August 2025 with the aim of providing a decentralized trust layer for autonomous AI agents, enabling them to carry out discovery, selection, and interaction without the need for pre-established trust. It is seen as a key protocol for building an open "agent economy." ERC-8004 was jointly authored by MetaMask, the Ethereum Foundation, Google, and Coinbase members, and has been actively promoted by the newly formed dAI team at the Ethereum Foundation. It has attracted participation from over 150 projects, with a community of over 1,000 people, making it one of the most discussed proposals on the Ethereum Magicians forum.
Some in the community believe that the protocol signals Ethereum's attempt to become the settlement and coordination backbone for AI agents. However, the balance between user experience, security, and decentralization is still subject to real-world feedback once the mainnet is operational.
3. Perp DEX: TGE Expected Divergence and Buyback Policy Controversy
Lighter TGE Timing Shift: Market Expectations Intensify Divergence
According to data shared by zoomerfied on Polymarket, the market predicts a 35% probability that Lighter will not conduct a TGE in 2025, with December 29, 2025, considered the current most likely launch date. The relevant charts show that this probability has been steadily increasing since the interim low point on December 15th, reaching 35% on December 18th, while also noting some degree of retracement.
This prediction has sparked debate within the community, with some questioning the validity and interpretive value of the information itself, while others believe that there is a lack of immediate motivation for a TGE within the year in the current market environment, making a delay to early 2026 more reasonable. Others have pointed out that the end of December falls within a holiday window, with limited market attention, making it difficult to generate significant momentum even with a token launch. Overall, the discussions surrounding the timing of Lighter's launch demonstrate significant uncertainty, reflecting the market's ongoing oscillation between project pace and risk appetite for the Perp DEX.
Hype Ecosystem New Project Perpetuals: Continuous Expansion of the Perpetual Contract Track
Perpetuals, a new Perp project launched in the Hyperliquid (Hype) ecosystem, has made its official debut, focusing on decentralized perpetual contract trading and emphasizing design innovations in leverage mechanisms and liquidity incentives. Despite limited disclosure details, the community generally sees it as an extension of Hype's existing derivatives landscape and potentially forming a competitive relationship with projects like Lighter.
Some discussions suggest that in the future, this project may synergize with the points system or cross-chain mechanism within the Hype ecosystem, thereby driving user migration and transaction activity. Overall, the emergence of Perpetuals is seen as a signal of the continuous expansion of the Hype ecosystem, further intensifying the product and mechanism competition within the Perp DEX race.
Buyback or Investment in Growth? Structural Debate Sparked by Hype's Buyback Strategy
There is a noticeable community split surrounding the ongoing $HYPE buyback strategy by Hyperliquid.
Some viewpoints point out that Hyperliquid has allocated around $1 billion for token buybacks, but with limited long-term price impact. They believe that these funds should be more directed towards compliance development and building competitive barriers to address potential future pressure from traditional financial institutions like Coinbase, Robinhood, and Nasdaq entering the perpetual contract market. They also warn that buybacks may become a structural risk source after 2026.
In contrast, other voices argue that in the current cycle, buybacks are one of the few structurally supportive measures with certainty. They not only help stabilize token expectations but also build anti-decline barriers by directly feeding platform cash flow back into the token. Some opinions also suggest that buybacks do not necessarily exclude investment in growth, as the key lies in balancing fund allocation. The overall debate reflects the ongoing balance of DeFi projects between "price stabilization through buyback" and "long-term expansion." It also highlights the strategic dilemma that Perp DEX projects face as TradFi competitive pressure gradually approaches.
4. Others
At the infrastructure level, MegaETH has announced that its Frontier mainnet is officially open to developers and projects.
The network has been online for several weeks, initially focusing on testing with infrastructure teams such as LayerZero, EigenDA, Chainlink, RedStone, Alchemy, and Safe, and is now starting to support broader stress testing and unlocking the first batch of real-time applications. According to related information, MegaETH has adopted a relatively transparent testing and observation approach, integrating block explorers, data analysis tools such as Blockscout, Dune, and Growthepie, and introducing community visualization solutions like MiniBlocksIO and Swishi.
In community discussions, some interpret this as a critical stage "shifting from trial operation to real-world load," while others emphasize that the ability of high-performance chains to deliver on promises still depends on whether oracles and data infrastructure can keep pace. Overall, this opening is seen as a significant milestone for MegaETH's transition from the testing phase to production environment, with the goal of supporting more demanding cryptographic applications that require extreme performance.
In the stablecoin space, SoFi Bank has announced the launch of a fully backed stablecoin called SoFiUSD, becoming the first nationally chartered retail bank to issue a stablecoin on a public permissionless blockchain.
In its official statement, SoFiUSD is positioned as a stablecoin infrastructure for banks, fintech, and enterprise platforms, currently mainly used for internal settlements, with plans to gradually open it up to all SoFi users.
The community discussion has focused on both its product-market fit and liquidity challenges on one hand, and the significance at the infrastructure level on the other hand: leveraging the Galileo processing engine to revamp fintech settlement processes, enabling 24/7 instant settlements, reducing pre-funding and reconciliation costs, and earning interest through investing in U.S. Treasuries. This development is seen as a sign of further integration between the traditional banking system and blockchain, highlighting the accelerated adoption of regulation-friendly stablecoins.
Meanwhile, Visa has revealed that the annualized transaction volume of its stablecoin settlement pilot has reached $3.5 billion, with the related business moving from the concept testing phase to observable market signals.
Visa has also announced two initiatives: first, launching a global stablecoin consulting service through Visa Consulting & Analytics to assist financial institutions in evaluating market fit and implementation paths; second, supporting U.S. issuers and acquirers to achieve 24/7 settlement via Circle's ref="/wiki/article/usd-coin-usdc-269">USDC on the Visa network, with Cross River Bank and Lead Bank being the first to go live, and more institutions planning to join by 2026. Community discussions have centered around the impact of this model on programmable fund management and liquidity efficiency, overall seen as a significant step in traditional payment giants accelerating blockchain integration.
Additionally, PayPal's stablecoins PYUSD and USDAI have announced a partnership aimed at enhancing interoperability and overall liquidity between stablecoins.
The information focuses on potential collaboration between the two parties in areas such as cross-chain transfers, liquidity pool integration, or payment scenario integration. The general community interpretation is that such collaborations help reduce the friction costs of stablecoins across different ecosystems and drive their joint use in DeFi and the payment system, reflecting the transition of the stablecoin race from a single-point competition to a more alliance-oriented evolutionary stage.
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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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