China Bans RWA for First Time: 7 Agencies’ Biggest Crypto Crackdown Since 2021
Seven Chinese financial associations jointly banned all crypto activities, explicitly including Real-World Asset (RWA) tokenization, in a major crackdown.Summary
Seven major Chinese financial industry associations, covering banking, securities, funds, and more, issued a joint risk warning that constitutes the most comprehensive crypto crackdown since the 2021 ban. This new directive explicitly prohibits all crypto-related business, including stablecoins, airdrops, mining, and, for the first time, Real-World Asset (RWA) tokenization, stating that Chinese regulators have not approved any such activities.
Regulators are reportedly concerned that RWA tokenization could be used as a sophisticated method for capital flight, allowing assets to be tokenized, moved offshore, and exchanged for foreign currency outside of traditional controls. This coordinated action, which follows a recent meeting by the People's Bank of China (PBoC) targeting stablecoins, establishes a 'four-layer blockade' against mining, stablecoin channels, RWA pathways, and fraudulent schemes.
The statement also clearly distinguishes mainland policy from Hong Kong's crypto-friendly approach, warning that mainland staff of offshore virtual currency service providers will face legal consequences. While China promotes the digital yuan (e-CNY) as an alternative, the ban has caused significant discontent among young investors frustrated by being excluded from global crypto opportunities.
(Source：BeInCrypto)