Reuters cited two sources as saying that China’s securities regulator has advised some local brokerages to suspend real-world asset (RWA) tokenization businesses in Hong Kong, reflecting Beijing’s concerns over the rapidly emerging offshore digital asset market.
The RWA tokenization process typically involves converting traditional assets such as stocks, bonds, funds, and even real estate into digital tokens that can be traded on blockchains. In recent months, many Chinese companies, including brokerages, have launched related RWA products in Hong Kong.
According to the sources, at least two major brokerages received informal guidance from the China Securities Regulatory Commission (CSRC) in recent weeks, asking them not to engage in RWA tokenization businesses overseas.
One of the sources said the latest regulatory guidance is aimed at strengthening risk management for new businesses and ensuring that companies’ proposed initiatives are backed by solid and legitimate business foundations.
The RWA tokenization process typically involves converting traditional assets such as stocks, bonds, funds, and even real estate into digital tokens that can be traded on blockchains. In recent months, many Chinese companies, including brokerages, have launched related RWA products in Hong Kong.
According to the sources, at least two major brokerages received informal guidance from the China Securities Regulatory Commission (CSRC) in recent weeks, asking them not to engage in RWA tokenization businesses overseas.
One of the sources said the latest regulatory guidance is aimed at strengthening risk management for new businesses and ensuring that companies’ proposed initiatives are backed by solid and legitimate business foundations.
Over the past year, Hong Kong has stepped up efforts to position the Asian financial center as a digital asset hub. Many companies, including Chinese brokerages, are preparing to launch virtual asset trading, investment advisory, and virtual asset management services.