China Declares Real-World Asset Tokenization Illegal, Cracks Down on Domestic and Overseas Operators
China’s top financial groups speak with one voice. They call the tokenization of real-world assets an illegal money move. They warn local firms and those that work abroad. Beijing will not allow turning traditional assets into digital tokens on a blockchain inside its borders.
What is Real-World Asset Tokenization?
Real-world asset tokenization changes actual assets into digital tokens. Real assets include property, stocks, bonds, and raw goods. This method makes it easier to trade these items on a blockchain. It brings old markets and digital finance close together.
The Joint Warning from China’s Financial Bodies
Groups such as the National Internet Finance Association, Banking Association, Securities Association, Asset Management Association, Futures Association, Listed Companies Association, and Payment & Clearing Association spoke as one. They say projects that turn real assets into tokens are not allowed. No Chinese regulator has given approval to any project of this kind. All tokens, trading sites, and middlemen in this area do not have legal rights to work in China.
Risks and Regulatory Concerns
Officials see many risks. They point to fake asset backing, breakdowns in service, and wild trading that can change market prices. Chinese law treats token sales and trades as acts of security funding, which are banned. Criminals may hide scams behind coin types or mining tricks. Investors now face high risks of loss.
Crackdown on Domestic Support for Overseas RWA Providers
China will also punish people in the country who help foreign token groups. Teams in China that assist offshore projects may face charges. This rule affects many helpers such as consultants, technology teams, media firms, key voices, and payment service groups. It shuts down the local network that aids token projects.
No Room for Regulatory Ambiguity
China speaks plainly. No local rules allow the conversion of real assets into tokens. The warning makes clear that blockchain work or smart deals will not change the illegal state. Proposals for pilot projects have been rejected. The message is firm: token sales or trades in this manner are banned. Companies must move abroad or stop these projects.
Context: RWA Initiatives Beyond Mainland China
Some Chinese groups have tried these projects in regions with looser rules, such as Hong Kong. A branch of China Merchants Bank once turned a $3.5 billion fund into tokens on the BNB Chain. Worldwide, digital tokens for assets are growing. Stocks from firms like Apple, Nvidia, and Tesla are now part of digital markets. These tokens mirror the value of shares held in custody and have seen large trade volumes. Overall, global token projects have dropped about 20% in the last six months. In total, around $19.4 billion in tokens are held by close to 602,000 people.
What This Means for the Future of Asset Digitization in China
China says no to turning real assets into digital tokens. The country keeps a strict view on digital money. It aims to stop fraud and protect money rather than push new technology. This stands apart from other areas that support digital set-ups for property, stocks, or bonds. Investors, firms, and helpers must work in a world where rules differ between places. The ban shows the hard road ahead when classic assets meet new digital formats.
This report comes from a joint notice by China’s top groups and updates through January 2026. The report explains regulatory views without giving investment tips.
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This article was generated by Hivebox AI in collaboration with AuCan Gold.
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