Seven departments, including the China Internet Finance Association, issued a risk warning regarding preventing illegal activities involving virtual currencies.

PANews reported on December 5th that, according to the official website of the China Futures Association, the China Internet Finance Association, the China Banking Association, the Securities Association of China, the Asset Management Association of China, the China Futures Association, the China Association of Listed Companies, and the China Payment and Clearing Association jointly issued a risk warning regarding the prevention of illegal activities involving virtual currencies. The warning states: 1. Correctly understand the essential attributes of virtual currencies, real-world asset tokens, and related activities: Virtual currencies are not issued by monetary authorities, are not legal tender, do not have the same legal status as legal tender, and cannot be used as currency within my country. Stablecoins currently cannot effectively meet the requirements for customer identification and anti-money laundering, and pose a risk of being used for money laundering, fundraising fraud, and illegal cross-border fund transfers. Tokenization of real-world assets involves financing and trading activities through the issuance of tokens or other rights and bonds with token characteristics, which carries multiple risks, including the risk of fictitious assets, business failure, and speculative activities. Currently, my country's financial regulatory authorities have not approved any real-world asset tokenization activities. Domestic institutions and individuals engaging in activities such as exchanging legal tender for virtual currencies, issuing and financing real-world asset tokens, etc., within China are suspected of illegal financial activities including illegally issuing token vouchers, illegal fundraising, unauthorized public offerings of securities, and illegal operation of futures businesses. Overseas virtual currency and real-world asset token service providers, whether directly or indirectly providing services to my country for related business activities, also constitute illegal financial activities. Domestic staff of relevant overseas virtual currency service providers, as well as domestic institutions and individuals who knowingly or should have known that they are engaged in virtual currency-related business and still provide services to them, will be held legally accountable. II. Relevant institutions are prohibited from conducting business related to virtual currencies and real-world asset tokens. III. The public should be highly vigilant against all forms of virtual currency and real-world asset token business activities.