Seven major Chinese financial associations, including the China Internet Finance Association and the China Banking Association, have jointly issued a risk warning to prevent illegal activities involving virtual currencies. The warning emphasizes that virtual currencies are not legal tender and cannot be used as currency within China. It highlights the risks associated with stablecoins, such as potential use in money laundering and illegal cross-border fund transfers. The notice also warns against the tokenization of real-world assets, which is not approved by Chinese financial regulators and poses risks of fictitious assets and speculative activities. The warning further states that domestic institutions and individuals involved in exchanging legal tender for virtual currencies or issuing real-world asset tokens may be engaging in illegal financial activities. It also cautions that overseas service providers offering virtual currency services to China are conducting illegal activities. The public is advised to remain vigilant against all forms of virtual currency and real-world asset token business activities.