China Sets Rule Book for Real World Asset (RWA) Tokenization with New Crypto Rules
Updated Crypto Rules Stress RWA Tokenization
On February 6, 2026, eight Chinese regulatory bodies joined to issue a Notice titled "2026 Notice" that replaces the 2021 rules. Eight bodies agree and act, and the Notice gives clear terms for China’s digital work. The Notice sets a legal system where traditional asset rights turn into tokens. It shows that regulators now allow asset tokenization when done by approved systems.
Crypto Trades Stay Banned with Wider Reach
The 2026 Notice keeps the ban on crypto trading as illegal. The rule states that offshore firms or people must not supply crypto services to Chinese users. Chinese firms or their foreign arms must not create crypto or RMB-linked stablecoins outside China without a permit. The rule links stablecoins strongly to the RMB and adds a global control to their use. These clear points fix old gaps in the law for cross-border crypto deals.
New Law for RWA Tokenization
The Notice defines tokenization as turning asset rights into tokens by using coded systems and digital ledgers. The rule demands all tokenization work inside China to run through approved financial bodies and pass a permit process. Providing tech, IT, or similar help for tokenization without a permit is not allowed. Offshore firms must not serve Chinese clients with tokenization work. More details on approved banks, the right agencies, and the permit steps will come later.
Off-Shore RWA Tokenization Allowed if Rules Follow
Chinese entities may work on tokenizing local assets off-shore if they obtain permission from the right regulators. The Notice splits off-shore tokenization into three types:
- Debt tokens made by foreign firms,
- Tokens that work like shares showing local asset rights,
- Other token forms that use local asset rights.
Three main agencies share in the oversight: the National Development and Reform Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange. They all stick to one rule: the same work faces the same risks and must obey the same law. This method matches old rules for debt tokens and asset-backed tokens.
Rules for Off-Shore Asset-Backed Securities Tokens
At the same time, the China Securities Regulatory Commission put out Guidelines for off-shore asset-backed securities tokens. These Guidelines state how to release tokens that promise returns from local asset revenue. They block tokens if the capital market is barred from financing, if national security faces risk, if the main Chinese firm has a record of crime or a current probe, if the asset faces legal fights or cannot move, or if the asset falls on the banned list for local securitization.
Clear Legal Ground for RWA Tokenization in China
China now sets a clear legal ground for turning asset rights into tokens. Crypto trading stays banned while tokenization moves forward by approved systems. New rules protect tokenization by:
• Picking approved channels for on-shore work,
• Allowing off-shore tokenization when proper permits are in place,
• Assigning clear roles to key regulators,
• Setting steps for off-shore asset-backed token work.
These new rules draw a clear link between traditional asset work and digital token systems in China’s financial market.
Keywords: Real World Assets, RWA, tokenization, DeFi, asset tokenization, China crypto regulation, asset-backed securities tokens
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📝 About This Article
This article was generated by Hivebox AI in collaboration with nGRND.
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