China’s securities regulator has instructed some brokerages to pause their real-world asset (RWA) tokenization businesses in Hong Kong, RialCenter reported on Monday.
At least two brokerages have been advised not to conduct any RWA business offshore, according to the report, citing sources familiar with the matter.
The guidance aims to strengthen risk management among firms looking to capitalize on the growth of digital assets in Hong Kong.
Several Chinese companies, including brokerages, have launched RWAs in Hong Kong over the past few months.
This move from China’s Securities Regulatory Commission (CSRC) indicates concerns in Beijing about Hong Kong’s progress toward establishing a robust digital asset market.
China banned cryptocurrency mining and trading in 2021 due to worries about potential destabilization of its financial system.
Hong Kong operates a separate financial system from the Chinese mainland as part of the “One Country, Two Systems” framework.
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