China has issued one of its most forceful crypto warnings to date: Real-World Asset (RWA) tokenization is not welcome at all.
Seven major financial associations, including the National Internet Finance Association of China, released a joint notice urging the public and institutions to stay away from RWAs and virtual currencies, calling them risky, unapproved, and tied to illegal activity.
In the alert, the associations place RWAs in the same category as stablecoins, meme coins, “air coins” like Pi, and crypto mining.
They stress that China’s regulators “have not approved any real-world asset tokenization activities,” shutting the door on any assumption that RWAs might operate in a grey zone.
The risks they list are straightforward: fake assets, operational failures, speculation, and schemes disguised as innovation. They also warn that RWA tokens can be used for illegal fundraising, unauthorized securities issuance, and even illegal futures operations.
The warning includes a reminder that virtual currencies cannot circulate or be used as money in China. Tokens lacking clear tech or commercial value are called out as prone to manipulation and fraud – a message China has repeated before, but rarely with this level of coordination across industry groups.
Stablecoins are also back in focus, following last week’s statement from the PBoC that they fail to meet China’s KYC and AML requirements.
Every member institution is instructed not to participate in, support, or provide services for virtual currencies or RWA tokens – including trading platforms, issuers, or intermediaries.
The notice even warns that domestic staff working for overseas crypto or RWA companies could face liability if they “knew or should have known” they were aiding such activity.
China has now made its position unmistakable, placing RWAs alongside the crypto activities it considers off-limits.
RWA tokens are digital assets representing physical or financial assets like real estate, commodities, or bonds on a blockchain.
China considers RWA tokens risky, unapproved, and linked to fraud, illegal fundraising, and speculative schemes.
No. Stablecoins and cryptocurrencies cannot circulate or be used as money and are considered high-risk by regulators.
RWA tokens can involve fake assets, operational failures, speculative schemes, or illegal securities and futures activity.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Crypto asset manager 21Shares released its XRP 2026 outlook, projecting a base case target of…
Ethereum price is entering a high-risk, high-impact phase as traders brace for today’s FOMC decision,…
California, which generates about $4.1 trillion and contributes over 14% of the U.S. GDP, is…
Ripple is moving decisively to shut down speculation that XRP is being sidelined as the…
Bitwise CIO Matt Hougan says if the CLARITY Act does not pass, crypto faces a…
Ethereum co-founder Vitalik Buterin has revealed that he earned around $70,000 in profit on Polymarket…
