Main to remember
- China Securities Regulatory Commission (CSRC) has declared to certain Chinese securities companies to suspend their active active activities (RWA) in Hong Kong
- This regulatory decision underlines the continuous conservative position of China on financial innovation, maintaining strict control since its ban on cryptocurrency in 2021 while promoting requests for non-crypto blockchain.
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According to Reuters, Watchdog of Chinese securities said to certain Chinese brokerage houses to stop their real asset activities in Hong Kong.
The decision of China Securities Regulatory Commission affects large securities companies and the financial institutions involved in tangible assets by token like real estate and basic products on blockchain platforms.
The regulatory action continues the prudent approach of China to financial innovation. The country has implemented strict financial regulations in recent years, including cryptocurrency negotiation bans since 2021, while encouraging blockchain technology for non-crypto applications.
The CSRC intervenes frequently to avoid market volatility, such as the restriction of short -term sales or actions during stress periods. In 2024, the Commission took similar stabilization actions through the scholarships.
China has taken a break or limited of new financial products several times since 2017 to align with national priorities such as risk management and capital control. This model reflects the measured position of the government towards the tokenization of assets and emerging financial technologies.
Globally, the RWA sector has grown rapidly, with token workers reaching more than $ 28 billion in market value. Growth has been motivated by adoption in decentralized financing platforms, although China’s regulatory breaks can limit domestic integration compared to markets such as the United States and Europe.
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