China tightens regulations on real-world asset tokenization
Chinese financial associations have declared that the tokenization of real-world assets (RWA) is considered illegal financial activity, equating it to prohibited operations involving virtual currency. This move imposes significant legal risks on operators and platforms engaged in this area.
This regulatory tightening reflects the authorities’ intent to curb the growth of crypto technologies that might circumvent official oversight. Such measures could inhibit innovation in digital finance and impact investors and businesses dealing with RWA.
In the near future, further strengthening of legal oversight is expected, so market participants should be prepared for new challenges and regulatory requirements.
