China’s Regulator Halts RWA Tokenization by Brokerages in Hong Kong
China's securities regulator has instructed some brokerages to halt their real-world asset (RWA) tokenization activities in Hong Kong, according to a Reuters report.
- At least two brokerages have been asked to stop RWA operations offshore.
- The guidance aims to enhance risk management for firms amid the rise of digital assets in Hong Kong.
- Several Chinese companies have initiated RWA projects in Hong Kong recently.
- The directive from China's Securities Regulatory Commission (CSRC) reflects concerns about Hong Kong's expanding digital asset market.
- China banned cryptocurrency mining and trading in 2021 due to financial system stability concerns.
- Hong Kong operates its own financial system under the "One Country, Two Systems" framework.