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Investing.com -- China’s central bank announced Friday that it will further tighten restrictions on virtual currencies and related business activities.
In a notice released by Chinese authorities, the central bank emphasized that "virtual currencies do not have the same legal status as fiat currencies" and declared that business activities related to virtual currencies are "illegal financial activities."
The statement also specified that "domestic entities and their controlled overseas entities are prohibited from issuing virtual currencies overseas" without official approval.
This move reinforces China’s long-standing prohibitive stance on cryptocurrency activities. The central bank’s announcement is part of a broader effort to control financial risks associated with virtual currencies and prevent their use in illegal activities such as money laundering, fraud, and unauthorized cross-border fund transfers.
The notice also addresses stablecoins pegged to legal currencies, which Chinese authorities view as potentially infringing on monetary sovereignty. Additionally, the statement outlines restrictions on tokenization of real-world assets both domestically and for Chinese entities operating overseas.
Chinese regulators plan to implement a coordinated approach between central and local governments to enforce these restrictions and conduct educational campaigns to raise public awareness about the risks associated with virtual currencies.