China Bans Real-World Asset Tokenization and Limits DeFi Innovation
China’s government has banned tokenizing real assets. Seven top financial groups in China spoke as one. They call this tokenization illegal. They target firms in both mainland China and Hong Kong. China now stops any work on token projects. Beijing holds tight control over money changes.
What Is RWA Tokenization?
Tokenization means to change real items into digital tokens. These tokens claim rights for land, goods, or physical items. They join with rights or debt on a digital chain. Some back tokenization to add more trading ease. They hope it lets people own parts and invest in new ways.
China’s Unified Regulatory Rejection
On January 6, 2026, seven major groups in finance joined. Groups like Internet Finance, Banking, and Securities spoke together. They sent a notice that ties token projects with crypto and mining. They claim all such projects bring high risk and fraud. The groups say no token work has met Chinese law. No project has any legal trial phase by China.
Grounds for the Ban
The notice lists how token projects break the law:
• Illegal Fundraising: They ask for funds by selling tokens without rules.
• Unauthorized Securities: They move tokens outside set rules.
• Illegal Futures: They let tokens trade with high risk.
The paper explains that token assets do not guarantee true claims on actual items. This gap brings risks like fake assets and failing firms.
Beyond Borders: Impact on Overseas Projects and Service Providers
The ban reaches beyond China. Groups outside China fall too if they use Chinese staff. The notice holds firms and people to this rule. If one worker works in China, the whole project may face law charges. Tech firms, marketing groups, payment teams, and promoters on token projects now see this risk. One staff in China could force the whole network to stop.
Contrasting Global Perspectives on RWA Innovation
Other lands work with token projects. Singapore builds a clear path for asset tokenization. In China, token work stops while the state backs a digital yuan. China builds blockchain apps for cross-border tasks and works hard to control money flows. The government has also blocked firms like Ant Group and JD.com from using digital cash in Hong Kong. This step keeps state power on money and markets.
DeFi and Real Estate Tokenization: Future Implications
Global groups see token work as a way to split old assets into parts. Changing property shares to tokens may let many invest. Still, China’s ban shows how strict rules can hurt new work. When rules put safety over change, projects face tough times. Tech teams and money groups now work in a field where rules shift fast.
The news shows a split in global digital asset work. In places like Singapore, token projects grow. In China, rules hold fast. Investors and service teams must work hard in this fast-changing field.
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📝 About This Article
This article was generated by Hivebox AI in collaboration with AuCan Gold.
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Please consult with a qualified financial advisor before making any decisions related to investments, markets, or assets.
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