December 10, 2025
By Anjali Kochhar
Mainland China has intensified its clampdown on digital asset activities with seven major industry associations issuing their first joint warning against real world asset (RWA) tokenisation. The notice reflects Beijing’s hardened stance and signals mounting regulatory pressure ahead.
The associations, including the National Internet Finance Association of China, the China Banking Association and the Securities Association of China, cautioned that the tokenisation of real world assets carries significant risks. These include the creation of fake or unverifiable assets, the possibility of business failures, and speculative trading behaviour. According to the notice, none of these activities are officially approved in the mainland market.
Regulators such as the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) oversee these associations directly. This highlights the seriousness of the message. The move also follows heightened enforcement actions this year, disappointing expectations that Beijing might loosen restrictions as the United States increasingly embraces digital asset innovation.
The PBOC and other government bodies recently reiterated concerns over stablecoins. They said such tokens fail to meet China’s standards for customer identification and anti money laundering measures. Authorities further instructed domestic companies to avoid providing services related to cryptocurrencies or tokenised assets, even indirectly.
Legal experts say the notice also has international implications. Overseas companies involved in RWA tokenisation could face legal consequences if they have mainland operations or employees. This could force them to completely disengage from the Chinese market.
The timing has raised fresh questions about Hong Kong’s ambition to establish itself as a regulated digital asset hub. Several mainland linked institutions had launched RWA pilot programs in Hong Kong earlier this year. However, they have kept a low profile since the CSRC advised Chinese brokerages to pause such initiatives in September.
Despite this, some progress is still visible in the city. A Hong Kong subsidiary of China Merchants Bank recently tokenised a 3.5 billion US dollar money market fund on BNB Chain. The Hong Kong Monetary Authority is also running the Project Ensemble tokenisation sandbox. Ant Group chairman Eric Jing Xiandong revealed during Hong Kong Fintech Week that tokenised bank deposits were successfully used for real time settlement in the project.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
