China Pauses RWA Tokenization in Hong Kong Amid Regulatory Caution
China's securities regulator has instructed domestic brokerages to halt real-world asset (RWA) tokenization activities in Hong Kong, signaling Beijing's growing wariness of offshore digital asset experiments. The move comes despite Hong Kong's aggressive push to establish itself as a digital finance hub, with initiatives spanning tokenized deposits, RWA trading frameworks, and crypto exchange licensing.
The global RWA market exceeded $25 billion in Q2 2025, with projections suggesting it could surpass $2 trillion by 2030. Hong Kong's progressive stance contrasts sharply with mainland China's continued prohibition of crypto trading and mining since 2021, underscoring divergent approaches to financial innovation within the Greater China region.
