[PBOC and 8 Departments Issue Document No. 42, Clarifying RWA and Stablecoin Regulatory Pathways] The People's Bank of China (PBOC), together with the National Development and Reform Commission and six other departments, jointly issued the 'Notice on Further Preventing and Addressing Risks Related to Virtual Currencies and Other Relevant Activities' (Yinfa [2026] No. 42), explicitly bringing tokenization of real-world assets (RWA) and stablecoins under regulatory oversight. The document specifies functional restrictions on stablecoins pegged to fiat currencies, prohibiting the issuance of stablecoins pegged to the Chinese yuan without approval. It defines RWA as activities that convert asset rights through cryptographic technology. A dual-track regulatory responsibility system is implemented, with the central bank leading the regulation of virtual currencies and the China Securities Regulatory Commission (CSRC) leading the regulation of RWAs. Local regulatory responsibilities are further reinforced. The document also strengthens regulatory requirements for intermediaries, technology service providers, and domestic financial institutions conducting overseas business. Additionally, it clarifies the legal responsibilities and compliance standards for token issuance abroad.