Seven Chinese Financial Associations Warn Against Virtual Currency and Tokenized Real-World Asset Activities

Seven Chinese financial associations, including the National Internet Finance Association of China, released a joint risk warning on Dec. 5 against illegal activities involving virtual currencies and related assets. The warning states that virtual currencies cannot circulate or be used as currency in China, and that Chinese financial regulators have not approved any real-world asset tokenization activities. The associations urged the public to remain vigilant and avoid participating in virtual currency or real-world asset token activities, as well as illegal fundraising and securities issuance disguised as cryptocurrency "mining" operations.