Central banks and eight departments: Strict supervision on domestic entities conducting related businesses abroad

February 6 news, the People's Bank of China and eight departments issued a notice on further preventing and addressing risks related to virtual currencies.

It mentioned that strict supervision will be implemented for domestic entities conducting related businesses abroad, and without the lawful approval of relevant departments, domestic entities and their controlled foreign entities are not allowed to issue virtual currencies abroad.

Domestic entities directly or indirectly conducting foreign debt forms of real-world asset tokenization businesses abroad, or conducting asset securitization-like real-world asset tokenization businesses based on domestic asset ownership, income rights, etc. (hereinafter collectively referred to as domestic rights) shall be strictly supervised by the National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments according to their responsibilities, following the principle of 'same business, same risk, same rules'.

The overseas subsidiaries and branches of domestic financial institutions providing real-world asset tokenization-related services abroad must operate prudently in accordance with the law, equipped with professional personnel and systems, effectively prevent business risks, strictly implement client access, suitability management, anti-money laundering, and other requirements, and be included in the compliance and risk management system of domestic financial institutions.