China Urges Pause on Hong Kong Real-World Asset Tokenization

China's Securities Regulatory Commission has informally directed domestic brokerages to suspend real-world asset tokenization activities in Hong Kong. The move reflects Beijing's unease with the rapid expansion of offshore digital asset markets, even as Hong Kong positions itself as a crypto hub.

At least two major financial institutions received guidance to halt RWA projects, signaling heightened regulatory scrutiny. The CSRC's intervention prioritizes risk containment and legal compliance over innovation in this emerging sector.

Hong Kong's ambitious digital asset strategy now faces headwinds from mainland authorities. The special administrative region continues developing its crypto infrastructure, creating tension with China's conservative approach to blockchain-based financial products.