China Unveils New Rules for Real-World Asset Tokenization: A Shift for Digital Securities
On February 6, 2026, eight government groups set new rules for asset tokenization. The People’s Bank of China, the National Development and Reform Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange helped put these rules in place. The rules close a gap in regulation and bring clear control.
A Clear Way to Tokenize Assets
China now defines tokenization as the use of cryptographic tools and distributed ledger methods. The process changes rights in physical or financial assets into digital tokens. Tokens can trade on blockchain systems. The Notice makes a clear split between asset token work and general coin deals. It says tokenizing local assets and issuing tokens abroad is allowed under firm control. Tokenizing inside the country needs proper licensing. These rules aim to prevent unapproved work.
Replacing Old Methods
Experts say the 2026 rules end the 2021 methods. The new approach builds layers using bans, risk checks, and licensed work. It shows that some token projects qualify as regulated financial deals under clear rules. The idea follows the mantra “same business, same risk, same rules.”
Regulator Roles and Stablecoin Issues
The rules set clear tasks:
• The National Development and Reform Commission looks after offshore debt tokens.
• The China Securities Regulatory Commission handles equity tokens and asset securitization.
• The State Administration of Foreign Exchange monitors how funds return to China.
• Other tokens share oversight between the Securities Commission and related groups.
The rules also treat fiat-pegged stablecoins as if they work like cash. Experts warn that fiat-to-stablecoin swaps may be seen as hidden foreign exchange work under future court views. This condition may add risk to over-the-counter and cross-border deals.
Guidelines for Issuing Tokens Abroad
In a related move, the CSRC announced steps for issuing tokens backed by onshore assets overseas. A list stops tokens tied to national security issues, disputes, or other risks. The process includes filings, document sharing, and clear details on token design. The rules may raise costs and favor large firms over small startups.
Risk Control for Foreign Institutions
China requires financial firms abroad to set strict controls. They must check customer identities, match deals to customer needs, and guard against money crimes. These controls must work with local risk systems. The rule shows that firms must work under tough checks while they serve in asset token work.
Legal Advice on Token Work and Local Risks
Lawyers say the rules treat asset token work like security token deals. They note that the method raises risks in money matters. They warn that unsupervised trading, unlicensed fund work, and marketing aimed at small buyers could bring legal pain.
Tech Challenges Remain
Even with clearer rules, tech issues slow token work. The market shows mixed token formats, wallet troubles, and complex design plans. Models like Aave’s aToken and Lido’s stETH show clear yield paths on-chain. Bond token forms, such as ERC-3525 and ERC-3475, face high costs for wallet setups. Current tokens use on-chain shares with multipliers, which may confuse wallet users.
Experts say the main task is to build a strong on-chain system. The system must show steady yields, mix different financial tools, and give a feel that matches real asset management.
A Careful Shift, Not a Full Crypto Embrace
While the rules change the game for asset token work, they do not bring virtual coins fully into the system. Regular digital coins stay mostly outside the main channels; stablecoins get ongoing checks; asset token work now fits with trading and cross-border fund rules. Experts say this step is one of careful control focused on traditional banks and strict rules.
China’s new rules set a clear guide for asset tokenization. The move builds a road for fresh ideas under strong risk checks and matches the country’s own aims.
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This article was generated by Hivebox AI in collaboration with nGRND.
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