China Tightens Rules on RMB Buying and Selling
China’s central bank and market regulator have jointly issued new regulations clarifying exactly which RMB can and cannot be legally bought and sold, in a move aimed at cracking down on speculation and fraud in the country’s currency and coin collecting market. The People’s Bank of China (PBOC) and the State Administration for Market Regulation (SAMR) released Announcement No. 19 of 2026 on August 21, with the rules taking effect on September 1, according to Xinhua News.
Why New Rules Were Needed
The new regulations replace two earlier regulatory documents from 1997 and 2016, which experts say had become outdated in the face of rapid changes in China’s coin and currency market. “Some measures regulating RMB buying and selling have been in place for over 20 years and no longer fit the current market reality,” said Dong Qingma, vice dean of the China Financial Research Institute at Southwestern University of Finance and Economics, as reported by Xinhua’s analysis.
The rise of online trading platforms has been a key driver of the regulatory overhaul. Internet marketplaces have become the mainstream sales channel for coin and currency products, yet existing rules did not adequately address online trading, leaving room for unscrupulous merchants to exploit gaps in oversight.
What the New Rules Say
At the core of the announcement is a clear delineation of what can and cannot be traded. Currently circulating RMB cannot be bought or sold under any circumstances. This prohibition targets practices such as hoarding and speculating on same-number, consecutive-number, or specific-version banknotes, which regulators say disrupt normal currency circulation and undermine the credibility of legal tender.
However, the rules explicitly permit trading in two categories: RMB that the PBOC has announced to stop circulating, and commemorative coins, which include both ordinary commemorative coins and precious metal commemorative coins. As People’s Daily noted, stopped-circulation RMB no longer functions as currency and holds greater value as historical artifacts and collectibles, making them eligible for legal trade.
The announcement also imposes a critical restriction on ordinary commemorative coins: they cannot be bought or sold in any manner before they are made available for public exchange. This provision targets pre-sale speculation and hoarding that has plagued recent commemorative coin releases, where reservation systems crash and coins appear on secondary markets at inflated premiums.
Anti-Fraud and Anti-Money Laundering Measures
The new regulations contain robust consumer protection provisions. Sellers are prohibited from making false claims, exaggerating returns, or guaranteeing profits. “This ‘combined punch’ refines regulatory requirements and improves institutional adaptability,” Dong said. “It helps guide the market toward standardized development without restricting the normal needs of collectors.”
According to 21st Century Business Herald, the rules also address long-standing confusion between genuine RMB commemorative coins and commemorative medals, notes, or gold items that merely resemble currency. Manufacturers of such items are barred from using the PBOC’s name, logo, or currency units, and cannot mislead consumers into believing these products are RMB or that the seller is the central bank.
The regulations explicitly prohibit using RMB trading for money laundering, illegal fundraising, or other illicit financial activities. Banking financial institutions and their employees who support or participate in illegal RMB trading using their positions will face legal consequences.
Online Platform Oversight
A significant innovation of the new rules is the explicit inclusion of online trading platforms under regulatory jurisdiction. Cleanup of illegal RMB trading on network platforms will be handled by PBOC branches and market supervision departments at or above county level, based on the operator’s actual business location or the platform operator’s registered address.
As First Financial reported, this addresses a critical gap, as e-commerce platforms have become the primary channel for coin sales but often fail to adequately vet merchants or remove non-compliant products in a timely manner.
Implications for Collectors and the Market
Lou Feipeng, a researcher at Postal Savings Bank of China, explained the rationale behind the crackdown: “Illegal buying and selling of RMB currently in circulation blurs the boundary between ‘circulating currency’ and ordinary ‘collectibles.’ Hoarding and speculating on same-number, consecutive-number, or specific-version RMB disrupts normal RMB circulation order and damages RMB’s credibility.”
For legitimate collectors, the new rules are designed to be protective rather than restrictive. Officials have stated that the regulations target speculation and fraud while safeguarding the public’s legitimate collecting interests. Collectors are advised to verify authenticity through the PBOC website before purchasing and to be wary of “guaranteed returns” or “no risk” claims.
What to Watch For
Looking ahead, the PBOC and SAMR have announced plans for enhanced regulatory coordination, including routine monitoring of illegal RMB trading and false advertising, mandatory removal of non-compliant products from online platforms, and joint special cleanup operations targeting both online and offline sales channels. As CCTV reported, the new framework represents a significant modernization of China’s currency trading regulatory system, with the potential to reshape the country’s coin collecting landscape for years to come.