China’s Financial Associations Reclassify RWAs as ‘Risky‘: Report
Major Chinese financial associations have reclassified Real-World Asset tokenization as a 'risky' business model facing regulatory crackdown.Summary
Several major Chinese financial industry associations, including the Asset Management Association of China and the China Banking Association, have reportedly decided to stop treating Real-World Asset (RWA) tokenization as a 'new technology' requiring regulatory clarification. Instead, they now classify it as a 'risky' business model, grouping it with illegal activities like stablecoins and 'air coins.' The associations stated that RWA tokenization involves financing and trading risks such as fraud and speculative hype, noting that no such activities have been approved by Chinese regulators. This policy shift effectively defines RWA involvement as prohibited financing and trading activity, signaling a regulatory goal to exclude it entirely from the legal landscape, rather than optimizing it through technical pilots.
(Source：Cointelegraph)