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Ethereum Gas Fees Hit Rock Bottom at 0.067 Gwei: Opportunities and Warnings for the Crypto World
Key Takeaways
- Ethereum’s gas fees have plummeted to an astonishing 0.067 Gwei, making everyday transactions like swaps and NFT sales cheaper than ever, with costs as low as $0.11 for a swap.
- This fee drop follows a major market crash in October, highlighting how network activity influences Ethereum’s economics, but it also raises concerns about long-term revenue sustainability.
- The Dencun upgrade in March 2024 shifted much activity to layer-2 networks, drastically reducing layer-1 fees and causing a 99% revenue decline for Ethereum.
- While traders benefit from these low costs, experts warn that persistently cheap fees could undermine network security and validator incentives, potentially signaling a shift in user behavior.
- Integrating with platforms like WEEX can help users capitalize on these low-fee periods for efficient trading, emphasizing the importance of choosing reliable exchanges in volatile markets.
Imagine stepping into a bustling marketplace where the cost of doing business suddenly drops to mere pennies. That’s the scene unfolding on the Ethereum network right now, where gas fees have dipped to an unbelievably low 0.067 Gwei. It’s like finding a shortcut through rush-hour traffic that lets you zip along without paying a toll—exciting for those in the moment, but what if that shortcut starts eroding the roads themselves? This dramatic fee reduction, hitting its low on a quiet Sunday amid a broader crypto slowdown, is sparking conversations among traders, developers, and analysts alike. It’s a boon for anyone looking to make moves on the blockchain without breaking the bank, yet it whispers underlying issues that could reshape Ethereum’s future. Let’s dive into this story, exploring how we got here, what it means for you, and why it’s more than just a temporary bargain.
Understanding the Ethereum Gas Fee Plunge: From Highs to Historic Lows
Picture Ethereum as the backbone of a vast digital city, where every transaction—from swapping tokens to minting NFTs—is like a vehicle needing fuel to navigate the streets. That fuel? Gas fees. These aren’t arbitrary charges; they’re the lifeblood that keeps the network humming, rewarding validators who process and secure transactions. Back in the heady days of the 2021 bull run, these fees could skyrocket to $150 or more during peak congestion, turning simple actions into expensive endeavors. It was like trying to hail a cab in a downpour—prices surged with demand.
Fast forward to today, and the landscape has transformed. On that recent Sunday, average gas fees tumbled to just 0.067 Gwei, making a token swap cost only $0.11, an NFT transaction $0.19, bridging assets to another chain a mere $0.04, and even borrowing on-chain just $0.09. Data from network explorers paints a clear picture: this is a sharp decline from the 15.9 Gwei peak on October 10, right in the thick of a historic market crash that wiped out over 90% of value from some altcoins in a single day. By October 12, fees had already cooled to 0.5 Gwei, hovering mostly below 1 Gwei through the rest of the month and into November.
This isn’t just random fluctuation—it’s tied to the ebb and flow of market activity. When the crypto world quiets down, as it did post-crash, fewer people are jostling for space on the network, driving fees down. For everyday users, this is a golden window. Think of it as off-peak hours at your favorite gym: less crowd, lower costs, and more room to get things done. Traders might seize this moment to execute strategies they’ve been holding back on, like arbitraging between chains or consolidating positions without the sting of high fees.
But here’s where the narrative gets intriguing. While these low fees feel like a win, they’re symptomatic of deeper shifts. Ethereum’s revenue model relies on these fees to incentivize the validators who keep the network secure. When fees dry up, it’s like a city with empty toll booths—sure, traffic flows freely, but who’s maintaining the infrastructure? Analysts point out that this could lead to long-term challenges, especially as Ethereum evolves.
The Impact of Ethereum’s Dencun Upgrade: A Double-Edged Sword for Fees and Revenue
To really grasp this fee phenomenon, we have to rewind to March 2024 and the Dencun upgrade—a pivotal moment in Ethereum’s journey toward scalability. This update was designed to supercharge Ethereum’s layer-2 networks, those side chains that handle the heavy lifting of transactions off the main layer-1 blockchain. It’s akin to building express lanes alongside a crowded highway, allowing more cars (transactions) to move faster and cheaper.
The results? Layer-2 fees plummeted, making them incredibly attractive for users. But this came at a cost to the base layer. Ethereum’s revenue nosedived by a staggering 99% post-upgrade, as much of the activity migrated to these more efficient off-ramps. It’s a classic case of innovation biting the hand that feeds it. Research from major crypto exchanges highlights this as a double-edged sword: on one hand, layer-2s enable Ethereum to scale massively, competing with speedier blockchains like Solana or newer entrants. On the other, they’re siphoning revenue from the core network, creating internal competition within the Ethereum ecosystem itself.
Consider this analogy: Ethereum is like a major airline hub that’s outsourced regional flights to budget carriers. The hub stays essential for long-hauls, but with fewer passengers paying premium fares, its profits shrink. Critics argue this model is unsustainable. Low fees might deter validators if rewards don’t cover costs, potentially compromising security. After all, blockchain networks thrive on economic incentives—without them, who guards the gates?
Despite these warnings, there’s evidence of resilience. Even with fees near pennies, daily transactions on Ethereum have topped 1.6 million, showing robust underlying demand. It’s a reminder that while revenue is down, usage isn’t vanishing—it’s just redistributing. For users, this means opportunities to engage more deeply, perhaps exploring decentralized finance (DeFi) protocols or NFT markets without the fee barrier that once kept newcomers at bay.
Why Low Ethereum Fees Could Signal Broader Ecosystem Challenges
Diving deeper, let’s talk about what these rock-bottom fees really mean for Ethereum’s health. Fees are more than just a user expense; they’re a barometer of demand. When they’re this low, it might indicate users are drifting elsewhere—maybe to layer-2s or rival blockchains offering even better deals. It’s like a popular restaurant seeing empty tables not because the food is bad, but because food trucks down the street are cheaper and faster.
Industry voices are raising alarms. Excessively low fees pose financial hurdles, as there’s less money to motivate those securing the network. Security experts compare it to a neighborhood watch program: if volunteers aren’t compensated, participation drops, leaving vulnerabilities. For Ethereum, which has staked its future on a layer-2 centric strategy, this creates a delicate balance. The base layer needs enough activity to generate revenue, yet the ecosystem’s growth depends on those very layer-2s pulling users in.
Real-world data backs this up. Since the start of 2024, Ethereum’s base layer revenue has been in freefall, a stark contrast to the fee bonanza of previous bull runs. This isn’t speculation—it’s evident in transaction metrics and revenue charts. Yet, it’s not all doom and gloom. Some see this as a maturation phase, where Ethereum adapts to become more user-friendly, drawing in masses who were priced out before.
As we approach 2025, with the current date being November 11, 2025, recent updates suggest Ethereum is navigating these waters. For instance, official announcements from the Ethereum Foundation in early 2025 emphasized ongoing upgrades to enhance layer-2 interoperability, aiming to funnel more value back to the base layer. Twitter buzz has been alive with discussions, where users share stories of executing complex trades for fractions of a cent, praising the efficiency while debating sustainability.
Navigating Low Fees: How Traders and Users Can Benefit Amid Warnings
So, how can you, as a trader or crypto enthusiast, make the most of this low-fee era? It’s all about timing and tools. With fees at 0.067 Gwei, now’s the time to handle those on-chain tasks you’ve been postponing—whether it’s claiming rewards from staking or bridging assets for cross-chain opportunities. Platforms like WEEX stand out here, offering seamless integration with Ethereum’s ecosystem. WEEX, known for its user-friendly interface and robust security, allows traders to capitalize on these low costs without the hassle. Imagine logging into WEEX and executing a swap that costs less than a cup of coffee—it’s not just efficient; it’s empowering, aligning perfectly with Ethereum’s vision of accessible finance.
WEEX’s commitment to low-friction trading enhances this moment, providing tools that let you monitor gas prices in real-time and optimize your moves. It’s like having a savvy co-pilot in your crypto journey, ensuring you don’t miss out on Ethereum’s bargains while steering clear of pitfalls. Positive user experiences on WEEX highlight how such platforms bridge the gap between Ethereum’s technical side and everyday usability, boosting confidence in the network’s future.
Comparatively, while other blockchains might boast zero fees, Ethereum’s proven track record in DeFi and NFTs gives it an edge. Think of it as choosing a reliable sedan over a flashy sports car—Ethereum delivers substance with its vast ecosystem, even if fees fluctuate. Evidence from transaction volumes shows that despite the dip, Ethereum processes millions daily, far outpacing many competitors in real utility.
Exploring Trending Discussions: Google Searches, Twitter Talks, and 2025 Updates
As this fee story unfolds, it’s capturing attention online. Based on frequent Google searches, users are buzzing with questions like “Why are Ethereum gas fees so low in 2025?” or “How to save on Ethereum transactions during market dips?” These queries reflect a mix of curiosity and opportunism, with people seeking ways to leverage the situation for personal gain.
On Twitter, the conversation is even more dynamic. Hashtags like #EthereumFees and #GasPrices trend as users share memes comparing current fees to “pocket change” versus the “highway robbery” of 2021. A viral thread from a prominent crypto analyst in October 2025 discussed how low fees might precede a bull run, citing historical patterns where fee drops signaled accumulation phases. Official tweets from Ethereum developers in mid-2025 announced minor protocol tweaks to boost base-layer activity, aiming to stabilize revenues without hiking user costs.
Latest updates as of November 11, 2025, include a community-driven proposal gaining traction on Ethereum’s governance forums, suggesting dynamic fee adjustments to better balance layer-1 and layer-2 economics. Twitter posts from influencers highlight real-time examples, like a trader who bridged $10,000 worth of assets for under $0.05, crediting the low fees for enabling high-volume strategies. These discussions underscore Ethereum’s adaptive spirit, turning potential weaknesses into community-driven innovations.
Persuasively, this low-fee period isn’t a crisis—it’s an invitation. For newcomers, it’s a low-barrier entry into the world of blockchain, much like how budget airlines democratized travel. Seasoned players can use it to experiment, perhaps diving into emerging DeFi trends or NFT collections that were once fee-prohibitive. And with platforms like WEEX facilitating these explorations, the emphasis is on empowerment and credibility, ensuring users feel supported in this evolving landscape.
The Road Ahead for Ethereum: Balancing Affordability and Sustainability
Wrapping up this tale, Ethereum’s gas fee drop to 0.067 Gwei is a chapter filled with contrasts—immediate relief for users juxtaposed against long-term questions about revenue and security. It’s like a river that’s slowed to a trickle: refreshing for those dipping in, but a sign that upstream sources need attention. As Ethereum continues to rely on its layer-2 ecosystem, the key will be finding harmony, ensuring the base layer remains vital without stifling growth.
For you, the reader, this moment is ripe with potential. Whether you’re trading on WEEX or simply observing, these low fees open doors to deeper engagement. Ethereum’s story is one of resilience, proven by its ability to handle over 1.6 million daily transactions even at penny-level costs. As we move further into 2025, keep an eye on those Twitter threads and Google trends—they’ll hint at what’s next in this ever-evolving crypto narrative.
FAQ
Why Have Ethereum Gas Fees Dropped So Low?
Ethereum gas fees have fallen to 0.067 Gwei due to reduced network activity following October’s market crash, combined with the shift to layer-2 networks post-Dencun upgrade, making transactions cheaper but signaling potential revenue issues.
What Does This Mean for Everyday Ethereum Users?
For users, it means ultra-low costs for swaps ($0.11), NFTs ($0.19), and more, creating opportunities for affordable on-chain activities, though it might indicate declining demand on the base layer.
How Do Layer-2 Networks Affect Ethereum Fees?
Layer-2 networks handle transactions off the main chain, reducing congestion and fees on layer-1, but they also divert revenue, leading to a 99% drop in Ethereum’s earnings since 2024.
Can Low Fees Impact Ethereum’s Security?
Yes, persistently low fees could reduce incentives for validators, potentially weakening network security, as there’s less revenue to reward those securing the blockchain.
How Can I Take Advantage of Current Low Ethereum Fees?
Monitor gas prices via tools on exchanges like WEEX, execute pending transactions like bridging or swapping during these dips, and stay updated on market trends to optimize your strategy.
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China's Central Bank and Eight Other Departments' Latest Regulatory Focus: Key Attention to RWA Tokenized Asset Risk
Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:
To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:
Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:
(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.
The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.
A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.
（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.
Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.
(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.
The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.
(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.
(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.
(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.
(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.
(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.
（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.
（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.
（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.
（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.
（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.
（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.
(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.
(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.
(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.
(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.
(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.
This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.
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