People's Bank of China and Seven Other Departments: Financial Institutions and Internet Companies Shall Not Provide Services for Virtual Currency and RWA Tokenization Business

BlockBeats News, February 6th. The People's Bank of China and eight other departments issued a notice on further preventing and handling risks related to virtual currency. The notice pointed out that financial institutions (including non-bank payment institutions) are not allowed to provide account opening, fund transfer, clearing, and settlement services for virtual currency-related business activities, may not issue and sell financial products related to virtual currency, may not include virtual currency and related financial products in the scope of collateral, may not engage in insurance business related to virtual currency or include virtual currency in the scope of insurance liabilities, and must strengthen risk monitoring. Any discovery of illegal activities or violations should be promptly reported to the relevant departments. Financial institutions (including non-bank payment institutions) are not allowed to provide 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 not allowed to provide intermediary, technical, and other services for unauthorized real-world asset tokenization-related business and related financial products.

The notice emphasized strengthening the management of Internet information content and access. Internet companies are not allowed to provide online venues, commercial displays, marketing, advertising, or paid traffic guidance services for virtual currency and real-world asset tokenization-related business activities. Any discovery of illegal activities or violations should be promptly reported to the relevant departments, and technical support and assistance should be provided for related investigations and inquiries. Based on problem leads transferred by the financial regulatory authorities, the departments in charge of internet security, telecommunications, and public security shall promptly, in accordance with the law, 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.