China Tightens Oversight of Virtual Currencies, Mining and Asset Tokenization in Financial Report
Key Facts
The governor of the People’s Bank of China submitted the financial work report to the Standing Committee of the National People’s Congress on November 3. Published on November 6, 2026, it set out measures to strengthen oversight of virtual currencies, mining and real-world asset tokenization. The report calls for improving the regulatory framework for virtual currencies and analyzing indicators of illegal exchange firms linked to them. It also calls for stronger oversight of real-world asset tokenization, alongside a standing mechanism to address virtual currency mining across the activity chain. The measures combine monitoring of financial activity linked to virtual currencies with curbs on mining and tighter controls on tokenization. Separately, the report says the digital yuan is moving smoothly from cash to deposit money as part of the financial opening-up process.
The report identifies analysis of indicators for illegal exchange firms linked to virtual currencies as one area of regulatory work. It places that analysis within efforts to improve the oversight framework, while also calling for stronger supervision of real-world asset tokenization. The report does not describe this approach as an opening of the tokenization market; it focuses on oversight amid Chinese rules restricting domestic activity in the sector. A notice issued in February bars real-world asset tokenization activities in China, except for work approved by the competent authority and conducted through specified financial infrastructure. Licensing and the infrastructure used therefore remain decisive in determining the scope of permitted activity. Officials also say the guidance revised an earlier notice issued in 2021 in response to new risks, while retaining the position that business activities related to virtual currencies are prohibited in China.
On mining, the report calls for a standing mechanism to address activity across the chain, linking oversight to its different stages. Shanghai issued a joint notice on February 6, 2026, calling for continued action against mining, the closure of existing projects and a ban on new ones. February’s rules require regional authorities to identify and close existing mining projects. They also ban new projects and the provision of mining equipment sales services in China. A Chinese industry standard for identifying mining applications, numbered YD/T 7286—2026, took effect on November 1, 2026, after being published on July 15. The standard provides guidance on monitoring, detection, verification and reporting of those applications. It applies to basic telecommunications companies, internet companies and security vendors, and sets out their roles in monitoring, inspecting and reporting information about mining applications.
The controls include barring financial institutions, including non-bank payment providers, from offering account opening, money transfer, clearing and settlement services for commercial activities linked to virtual currencies. The February notice also bars internet companies from providing operating space, promotion or paid transfer services for those activities. The China Securities Regulatory Commission says risks are being addressed through coordination between central and local authorities, monitoring money and information flows, and regulating the registration of market participants and advertising. The approach also includes combating mining and related crimes. The report said a new round of campaigns against illegal financial crimes had been carried out and a national campaign against illegal fundraising had been completed. These measures place oversight of digital activities within a broader campaign to tackle financial violations.
Along a parallel track, the report says the digital yuan is moving smoothly from cash to deposit money, a transition that is already under way. Chinese authorities announced in December 2025 that an updated framework for managing the digital yuan would take effect on January 1, 2026. Under the framework, digital yuan balances held in bank wallets are classified as deposit liabilities of commercial banks. The plan requires banks to pay interest on wallet balances under deposit-rate rules, with balances protected by deposit insurance. The financial work report presents the transition as an ongoing change in the classification of the official digital currency, rather than as a new future step. This is taking place alongside tighter oversight of private virtual currencies and mining and tokenization activities.
Next steps, according to the report, include strengthening financial oversight and combating illegal financial activity. Officials also plan to complete consultations and review of the fifth international mutual evaluation report on anti-money laundering. The China Securities Regulatory Commission says the response to risks will continue to rely on coordination between central and local authorities and monitoring money and information flows. The work also includes regulating advertising and combating mining and related crimes. The report sets no deadline for completing these steps. It presents them as part of ongoing efforts to strengthen oversight of financial activity and tackle violations.