China Urges Brokerages to Halt RWA Tokenisation in Hong Kong
CSRC asks brokerages to pause RWA tokenisation in Hong Kong, signaling China’s cautious approach to digital assets.
- CSRC urges pause on RWA tokenisation by local firms
- Guidance impacts at least two top brokerages
- China remains cautious despite Hong Kong’s crypto push
In a move that reflects China’s measured approach to digital assets, the China Securities Regulatory Commission (CSRC) has reportedly asked some mainland brokerages to pause their real-world asset (RWA) tokenisation activities in Hong Kong. The informal guidance was shared with at least two major financial firms, according to a recent report by Reuters.
The request underscores the growing divide between Hong Kong’s ambition to be a global digital assets hub and China’s conservative stance on crypto-related innovations.
What is RWA Tokenisation and Why Does it Matter?
Real-world asset (RWA) tokenisation refers to converting physical or traditional financial assets—like real estate, bonds, or commodities—into blockchain-based tokens. These tokens can then be traded on digital platforms, making ownership more accessible and increasing market liquidity.
Hong Kong has been actively supporting such innovations as part of its broader effort to position itself as a forward-thinking fintech hub. RWA tokenisation is seen as a key use case that could bridge traditional finance and decentralized technologies.
Beijing’s Cautious Approach Still Dominates
Despite Hong Kong’s regulatory clarity and push to attract crypto firms, Beijing appears unwilling to give its full blessing to certain blockchain developments—especially when tied to financial products. The CSRC’s informal move serves as a reminder that companies operating across both jurisdictions must balance between Hong Kong’s openness and China’s caution.
While the guidance from CSRC is not an outright ban, it indicates a desire to control the pace and scope of tokenisation experiments. This comes as no surprise to industry watchers, given China’s history of imposing strict controls on digital asset activity.
For now, the pause may slow momentum for RWA-related projects, but it’s unlikely to halt them entirely. Hong Kong’s regulatory body has yet to respond publicly, and the global push toward asset tokenisation continues to gain ground.
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