China orders corridors to pause tokenization businesses in Hong Kong: Report

By Hannah Pérez

The China Stock Regulator advised some of its local corridors to suspend RWA’s trade in Hong Kong. The restrictive position contrasts with the advances of Hong Kong in the cryptocurrency sector.

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• Chinese runners are receiving guidelines to stop RWA’s negotiation.
• According to Reuters, the Chinese Securities Regulator ordered pausar tokenization operations in Hong Kong.
• The restrictive position contrasts with the advances in Cryptocurrencies of Hong Kong.
• Hong Kong makes efforts to become a crypto center in Asia.

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In a new indication of China’s caution towards the rise of cryptocurrencies, the country’s authorities would be ordering runners to pause their tokenized assets negotiations in Hong Kong.

According to a report from Reurtsthe Chinese Securities Regulator He has informally advised some runners who suspend their real -world asset tokenization operations (RWA) in Hong Kong. This guideline, revealed by sources close to the matter, seeks to strengthen risk management in an expanding market that has generated enthusiasm among Chinese investors.

The Chinese Securities Regulatory Commission (CSRC) has issued informal orientations to at least two leading runners in recent weeks, urging them to pause their activities from RWA abroad, according to the report.

Sources cited by Reuters indicated that the measure points to “Strengthen the risk management of a new business and ensure that companies are backed by solid and legitimate operations“

It is worth noting that the RWA tokenization process implies converting traditional assets, such as actions, bonds, funds and even real estate, in negotiable digital tokens into Blockchain. It has become popular as institutions like banks explore it.

China restrictive order in the midst of the tokenization boom

This regulatory action contrasts with Hong Kong’s efforts to position itself as a global center of digital assets. In the last year, the city has promoted initiatives to attract cryptocurrency businesses, including the launch of regimes to Stablecoins and legal reviews on RWA token by Hong Kong’s monetary authority (HKMA).

China, which prohibited activities with cryptocurrencies, including trade and mining of Bitcoin In 2021 citing financial stability concerns, it maintains a restrictive and conservative position.

The report of Reuters It emphasizes that several Chinese firms, such as GF Securities and China Merchants Bank International (CMBI), have ventured in RWA in Hong Kong. For example, the unit of GF Securities In Hong Kong he released “GF Tokens” in June, performance products backed by US dollars prices, Hong Kong and Renminbi Offshore dollars.

CMBImeanwhile, helped to raise 500 million yuan (approximately USD $ 70.29 million) through an issue of RWA -based digital bonds last month. Also the branch Blockchain of Ant Groupthe Chinese technological giant affiliated with Alibabait is informed is carrying out an energy asset token effort for billions of dollars.

The Informa adds that there is no official information about how much this pause will last, and neither the CSRC, HKMA nor FSTB responded to requests for comments from comments from Reuters.

China cautiously observes advances in digital assets

This measure could now slow to tokenization efforts in Hong Kong, where Chinese financial groups have been one of the most active, as noted The Blockunderlining the tensions between offshore innovation and strict control in the continent.

The measure follows other recent actions of Beijing, such as the order to large corridors to stop the publication of research that promotes Stablecoins In August, in order to stop the retail interest promoted by the new regulations of Hong Kong.

RWA’s global market, valued at around 29,000 million dollars according to data from Rwa.xyzcould exceed 2 billion dollars by 2030, according to industry forecasts. Institutions such as Standard Chartered and Citi They project that it reaches 30 billion dollars within the next five years.

While Hong Kong accelerates his footprint in tokenization, in line with entities such as the European Commission, the London Stock Exchange Group and Dubai, which also advance in similar initiatives, China, instead, explores allowing the Stablecoins backed by Yuan for global uses, but not without caution and questioning its mass adoption.

This news occurs in a context of growing interest in digital assets, but highlights Beijing’s strict approach. Sources from both reports emphasize that the guideline is informal, which leaves open future adjustments open.

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Article written with the help of AI, edited by Diariobitcoin

Image generated with AI tool, under free use license

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