Chinese Financial Associations Classify Real Assets as 'Risks'

Chinese Financial Associations Take Action Against Tokenization of Real Assets

According to a report from Wu Blockchain, financial associations in China have announced a policy shift regarding the tokenization of real-world assets (RWA), categorizing it alongside stablecoins, "fictitious currencies," and cryptocurrency mining as illegal activities within China. Several major associations, including the China Asset Management Association, the National Internet Finance Association of China, and the Chinese Bankers Association, have decided that RWA is no longer considered "new technology," but rather a "risky" business model.

"Tokenization of real assets involves financing and trading activities carried out by issuing tokens or other rights or debt certificates with token-like features," stated the associations. "This entails multiple risks, including fraudulent asset risks, operational failures, and speculative hype. Currently, there are no real asset tokenization activities approved by China’s financial regulatory authorities."

This policy change confirms that engagement with RWA is viewed as a prohibited financing and trading activity under Chinese law, exposing sector participants to regulatory risks. Recently, the People’s Bank of China and another regulatory authority discouraged major technology firms in the country from pursuing their stablecoin plans, signaling concerns from Beijing.

"The message from regulatory authorities is clear: this is not a matter of technology, but the real financial risks far outweigh any technological benefits," added Wu Blockchain.