Seven major Chinese financial industry associations have jointly declared that real-world asset (RWA) tokenization constitutes an illegal financial activity in China, marking a sharp escalation in the country’s stance toward blockchain-based finance.
The statement comes shortly after authorities reaffirmed their long-standing ban on cryptocurrency trading and related services.
According to a local report, the warning was issued collectively by the China Internet Finance Association, China Banking Association, China Securities Association, China Asset Management Association, China Futures Association, China Association of Listed Companies, and the China Payment and Clearing Association.
Together, the groups represent nearly the entire spectrum of China’s regulated financial sector, from banking and securities to asset management and payments.
In the notice, the associations stated that RWA tokenization activities “lack any legal basis” under existing Chinese law.
They warned that practices involving the onchain issuance, trading, or promotion of tokenized real-world assets may constitute illegal fundraising, unauthorized securities issuance, or disguised crypto speculation. The statement applies to both domestic actors and international entities marketing RWA-related products to Chinese residents.
RWA tokenization has emerged globally as one of the fastest-growing sectors in digital finance, with projects focusing on putting assets such as bonds, funds, commodities, and real estate on blockchain networks.
Proponents argue that tokenization can improve efficiency, transparency, and accessibility. However, Chinese regulators and industry bodies appear to view the model as an extension of crypto activity rather than a neutral financial technology.
The joint declaration also cautioned financial institutions, technology providers, and intermediaries against providing services that support RWA issuance or trading, including marketing, custody, clearing, settlement, and payment processing.
Retail investors were urged to remain vigilant and avoid participating in schemes framed as “asset tokenization” or “onchain finance,” which the associations said often mask high-risk or fraudulent behavior.
The move reinforces China’s strict separation between blockchain technology and crypto-style financial products.Â
While the government continues to support permissioned blockchain use cases and the digital yuan, the latest warning makes clear that RWA tokenization, at least in its current form, falls outside the boundaries of permissible financial innovation in China.