China Releases Regulatory Framework for Real-World Assets
China has released an official regulatory framework for Real-World Asset (RWA) tokenization. The new guidelines clarify how tokenized assets will be treated under the country's existing financial laws. This move provides a degree of regulatory legitimacy and is expected to foster development in the RWA sector within the region.
- The new framework was jointly issued on February 6, 2026, by eight major Chinese authorities, including the People's Bank of China (PBoC) and the China Securities Regulatory Commission (CSRC). It formally separates the treatment of virtual currencies, which remain strictly banned, from Real-World Assets (RWAs), which are now acknowledged as a distinct financial business model. - This new regulation, referred to as "Document №42," explicitly repeals the infamous 2021 "924 Notice" that formed the basis of China's comprehensive ban on cryptocurrencies. For the first time, an official Chinese ministerial-level document provides a definition for RWA tokenization. - Onshore issuance and trading of RWA tokens are classified as illegal financial activities unless approved by competent authorities and conducted through designated financial infrastructure. This establishes a tightly controlled, franchise-based model for any domestic RWA activity. - The framework creates a legal pathway for tokenizing onshore Chinese assets for offshore markets, subject to regulatory oversight. Depending on the structure, these offerings will be regulated by bodies like the NDRC (for foreign debt) or the CSRC (for asset-backed securities). - For offshore issuance of asset-backed tokenized securities, the CSRC has implemented a filing-based system rather than a stricter pre-approval regime. Domestic entities controlling the underlying assets must file with the CSRC, providing detailed documentation on the assets and tokenization plan. - The regulations now explicitly permit Chinese financial institutions and their offshore subsidiaries to participate in compliant RWA tokenization services. This reverses a previous informal policy that discouraged their involvement. - While the framework provides a path for RWA development, it also tightens control over stablecoins. The notice states that no entity or individual may issue RMB-pegged stablecoins offshore without approval. - This policy clarification from Beijing contrasts with Hong Kong's ongoing efforts to establish itself as a digital asset hub. Initiatives like the Hong Kong Monetary Authority's "Project Ensemble" are actively creating a sandbox and pilot programs for tokenized deposits and assets, positioning the region as a key venue for compliant, offshore RWA activities involving mainland assets.
