China explicitly bans real‑world asset (RWA) tokenization, expands crypto prohibitions to include stablecoins, mining and airdrops
first published 2025-12-11T14:51:10Z
Seven major Chinese financial industry associations on Dec. 5 issued a joint notice saying RWA tokenization activities are not approved in mainland China and naming the sector alongside stablecoins, crypto mining and airdrops as prohibited. Regulators cited risks including fake assets, project failures, speculative trading and potential capital flight. The notice extends enforcement to offshore issuers that employ staff in China and follows years of prior restrictions including the 2017 ICO/exchange ban, 2021 nationwide trading and mining ban, and a recent PBoC reaffirmation that virtual currencies are not legal tender.
AI Analysis
The joint notice by seven industry associations explicitly prohibits RWA tokenization and lists it with stablecoins, mining and airdrops; regulators cited concrete risks (fake assets, project failures, speculative trading, capital flight) and extended enforcement to offshore issuers with China-employed staff — all factual regulatory actions likely to reduce on‑shore and related activity.
Expected Investor Sentiment: Very Bearish
Potential Market Impact: Significant
