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Major Chinese financial industry associations have reclassified real-world asset tokenisation as a risky and illegal activity, according to Wu Blockchain.
The groups said RWAs will no longer be treated as a new technology awaiting regulatory clarification.
Associations involved include China’s asset management, banking, securities, futures and payment clearing bodies.
RWAs were listed alongside stablecoins, “air coins” and crypto mining as prohibited crypto-related activities.
Real-world asset tokenization involves financing and trading activities carried out through the issuance of tokens.
The associations said.
They added that RWA activity carries risks including fraud, operational failure and speculative hype.
The notice said no RWA tokenisation projects have been approved by China’s financial regulators.
The policy shift effectively categorises RWA involvement as unlawful financing and trading under Chinese law.
Wu Blockchain said the document shows regulators intend to exclude RWAs entirely rather than regulate them.
The move follows reports that Chinese regulators discouraged domestic firms from pursuing stablecoin initiatives.
The crackdown comes as China continues to advance use of its digital yuan for payments.
US officials have warned that regulatory uncertainty could weaken America’s position in global digital finance.