Seven main Chinese language monetary trade associations collectively issued a danger warning, marking probably the most complete crypto crackdown for the reason that 2021 ban that drove all crypto exchanges in a foreign country.
The associations cowl banking, securities, funds, futures, fee clearing, listed corporations, and web finance. They said that every one crypto-related enterprise actions, together with stablecoins, airdrops, mining, and, notably, real-world asset (RWA) tokenization, are unlawful in China.
Sponsored
Sponsored
RWA Tokenization Enters Regulatory Crosshairs
The assertion, which was issued on Dec 5, explicitly famous that Chinese language monetary regulators have “not approved any real-world asset tokenization activities,” marking the primary official prohibition of RWA within the nation.
A researcher defined that the final time this coalition mobilized was September 24, 2021. It was when 10 authorities departments collectively issued the “Notice on Further Preventing and Disposing of Risks from Virtual Currency Trading Speculation.” That motion compelled all cryptocurrency exchanges to exit China and shut down all mining operations. China’s share of worldwide Bitcoin hashrate plummeted from 75%.
This transfer comes as international RWA tokenization surpasses $30 billion in market measurement. Main gamers like BlackRock’s $2 billion BUIDL fund—tokenized by Securitize and accepted as collateral on Binance, Crypto.com, and Deribit—are driving mainstream adoption.
Chinese language regulators seem involved that RWA tokenization may grow to be a complicated software for capital flight. The mechanism would permit people to transform home belongings into tokens, switch them to offshore wallets, and change them for overseas foreign money—all bypassing conventional banking and overseas change controls.
Enforcement Tightens With Multi-Company Coordination
The assertion reemphasized that digital currencies, together with stablecoins and tokens corresponding to Pi coin, lack authorized standing and can’t be circulated in China. People and organizations might not challenge, change, or increase funds by way of RWAs or digital currencies inside mainland China. This restriction additionally applies if offshore corporations make use of workers based mostly in China.
Sponsored
Sponsored
The coordinated motion follows the PBoC’s November 28 assembly with prime authorities officers. The authorities declared stablecoins a type of digital foreign money topic to prosecution.
A December report famous a 37% year-on-year enhance in cash laundering involving digital belongings, reinforcing the push for strict enforcement.
The seven associations’ joint assertion creates what analysts describe as a “four-layer blockade.” This contains slicing off mining infrastructure, blocking stablecoin fee channels, sealing RWA pathways, and eliminating fraudulent schemes like Pi Community.
The warning additionally attracts a transparent boundary with Hong Kong’s crypto-friendly strategy, stating that “mainland staff of offshore virtual currency service providers” will face authorized penalties. China has as a substitute promoted the digital yuan (e-CNY) as a state-approved various.
Hong Kong launched its stablecoin licensing regime on August 1, 2024, attracting 80 candidates, with first approvals anticipated in early 2026. Licensed platforms like HashKey and OSL proceed to function digital asset exchanges. The town additionally permits RWA tokenization pilots, although strictly restricted to offshore belongings and non-mainland customers.
Youth Discontent Simmers Beneath Floor
Discussions on on-line communities reveal disappointment over the coverage hole between China and Western nations. Critics argue that blanket bans stifle innovation alongside official investor safety.
