CSRC Pauses RWA Tokenization in Hong Kong Over Risk
China’s Securities Regulatory Commission (CSRC) has informally instructed major mainland brokerages to halt RWA tokenization operations in Hong Kong, citing financial risk concerns. The guidance affects projects converting stocks, bonds and real estate into blockchain-tradable tokens. The pause underscores Beijing’s cautious stance on digital assets and wariness of unregulated token schemes, including yuan-backed stablecoins. The CSRC decision follows recent mainland restrictions on stablecoin research and tighter cross-border brokerage account rules.
Meanwhile, Hong Kong’s Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) are still reviewing RWA tokenization laws. To date, regulators have received 77 stablecoin license applications. Industry players including GF Securities with HashKey Chain and CMB International launched RWA tokenization products earlier this year.
Global RWA tokenization market value stands at about US$29 billion, with forecasts exceeding US$2 trillion by 2030. Crypto traders should closely monitor regulatory risk in Hong Kong’s digital assets sector and reassess their RWA tokenization exposure.
Bearish
In the short term, the CSRC pause on RWA tokenization heightens uncertainty and may trigger sell-offs in RWA-linked tokens as traders reassess exposure. Regulatory hesitation in Hong Kong, a key digital asset hub, could curb liquidity and dampen token demand. Over the long term, continued risk-averse policies may slow adoption of RWA tokenization, delaying market expansion and limiting institutional inflows. However, clear regulatory guidelines in the future could reignite token issuance. Traders should monitor policy developments and maintain caution on RWA-linked assets.