Eight departments including the People's Bank of China: Virtual currencies do not have the same legal status as legal tender

The People's Bank of China and eight other departments have issued a notice on further prevention and disposal of risks related to virtual currencies (Yinfa [2026] No. 42). The notice clarifies the essential attributes of virtual currency, real-world asset tokenization, and related business activities. Virtual currency does not have the same legal status as legal tender. Virtual currencies such as Bitcoin, Ethereum, and Tether have the main characteristics of being issued by non monetary authorities, using encryption technology and distributed ledgers or similar technologies, and existing in digital form. They do not have legal solvency and should not and cannot be used as currency in the market.