Chinese regulators have reportedly urged brokerages to pause their real-world asset (RWA) tokenization activities in Hong Kong as part of a broader risk management strategy. The China Securities Regulatory Commission (CSRC) communicated this guidance informally to at least two prominent brokerages, reflecting Beijing's cautious stance on offshore tokenization amid the ongoing push from Hong Kong to establish itself as a digital asset hub. The pause follows the Hong Kong Securities and Futures Commission's (SFC) introduction of a stablecoin licensing regime aimed at fostering the city's digital finance initiatives. Despite the regulatory pause, experts believe it signals caution rather than a complete halt to institutional interest in tokenization. Observers suggest that while uncertainty may affect cross-border capital flows temporarily, the demand for tokenized assets remains strong, indicating a need for well-defined, coordinated regulations between jurisdictions.

Source đź”—