Eight Departments Including the Central Bank: Strict Regulation on Domestic Entities Engaging in Virtual Currency-Related Business Overseas

Odaily News The People's Bank of China and seven other departments have issued a notice on further preventing and addressing risks related to virtual currency and similar activities. It mentions that strict regulation will be implemented on domestic entities engaging in related business overseas. Without approval from relevant departments according to laws and regulations, domestic entities and their controlled overseas entities are prohibited from issuing virtual currencies overseas. For domestic entities directly or indirectly engaging in real-world asset tokenization business overseas in the form of external debt, or conducting asset securitization-like or equity-like real-world asset tokenization business overseas based on domestic asset ownership, income rights, etc. (hereinafter collectively referred to as domestic interests), strict regulation shall be carried out by relevant departments such as the National Development and Reform Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange according to their respective responsibilities and in accordance with laws and regulations, following the principle of "same business, same risk, same rules." Overseas subsidiaries and branches of domestic financial institutions providing real-world asset tokenization-related services overseas must act prudently in accordance with the law, equip themselves with professional personnel and systems, effectively prevent business risks, strictly implement requirements such as customer access, suitability management, and anti-money laundering, and incorporate these into the compliance and risk control management system of the domestic financial institution.