The People’s Bank of China (PBOC) said virtual currencies lack the essential attributes of legal tender, mandatory acceptance and fiat currency status under current regulations. It warned that illegal institutions continue using virtual-currency and blockchain branding for fundraising fraud, money laundering and other criminal activities. The notice reiterates that virtual-currency-related business conducted within mainland China is illegal financial activity. Overseas entities and individuals may not illegally provide related services to domestic parties, while domestic entities and overseas entities they control may not issue virtual currencies abroad without approval. The materials also state that domestic and overseas entities and individuals may not issue yuan-linked stablecoins overseas. The PBOC urged individuals and companies to avoid virtual-currency issuance, trading, investment, mining, promotional groups, apps and high-yield schemes, and to remain alert to requests involving bank cards, payment accounts or transactions conducted for others. The stance is consistent with the eight-department directive issued in February 2026 and reinforces China’s restrictions on crypto-related financial services.