Chinese Financial Associations Declare RWA Tokenization Illegal

Seven major Chinese financial industry associations have jointly declared real-world asset (RWA) tokenization an illegal financial activity, reinforcing the country's stringent stance against crypto-related operations. The China Internet Finance Association, alongside banking, securities, and asset management groups, issued a unified warning that such activities lack legal standing under Chinese law.

RWA tokenization was explicitly categorized alongside stablecoins and crypto mining as high-risk, fraudulent practices rather than emerging fintech innovations. Attorney Liu Honglin noted the rare coordination between associations signals a critical effort to mitigate systemic financial risks.

The notice defines RWA tokenization as unauthorized financing through tokenized debt instruments, emphasizing its inherent risks. This MOVE continues China's pattern of aggressive crypto suppression while global markets increasingly adopt blockchain-based asset tokenization.