Seven major Chinese financial industry associations jointly declared real-world asset tokenization an illegal financial activity, grouping it with cryptocurrencies, stablecoins, and crypto mining. The notice stated that RWA token issuance, trading, and related services lack any legal basis under Chinese law and pose significant financial and fraud risks.
The guidance extends beyond onshore projects, warning that overseas RWA initiatives with mainland Chinese staff or service providers may also face legal exposure. Regulators emphasized that token structures cannot guarantee legal ownership or asset liquidation, and rejected claims that RWA projects operate in regulatory gray areas or pilot phases.
The move sharply contrasts with jurisdictions such as Singapore, which has promoted regulated RWA experimentation, and aligns with Beijing’s broader strategy of tightening control over capital flows. Analysts say the decision effectively dismantles China’s domestic Web3 support ecosystem while reinforcing the state’s parallel push to expand the digital yuan.
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