China regulator tells brokerages to pause RWA tokenization efforts in Hong Kong: Reuters

China’s securities regulator has advised some top brokerages to pause real-world asset tokenization work in Hong Kong in a fresh sign of Beijing’s crypto caution as the city courts digital asset business.

The guidance from the China Securities Regulatory Commission has been informal and aimed at risk control, according to Reuters on Monday. Chinese financial groups have reportedly been among the most active new entrants to Hong Kong’s tokenization push. A halt from large players could slow near-term issuance. At least two brokers were contacted in recent weeks, but it’s still unclear how long the pause may last or if the CSRM will approach more firms.

RWA tokenization converts traditional assets — such as bonds, funds, equities, and even real estate — into assets that investors can trade on-chain. Hong Kong has leaned into that market with a broader push to license crypto activity and establish a stablecoin issuer regime. Meanwhile, mainland China has moved more slowly after its 2021 ban on crypto trading and mining.

The reported pause follows other recent steps from Beijing. In August, authorities asked major brokers to stop publishing research that endorses stablecoins, seeking to cool retail enthusiasm fed by Hong Kong’s new rules.

Also, the timing is notable. Global finance is busy trying to bring traditional assets onchain. Hong Kong has published a policy blueprint to speed RWA tokenization and licensing. The European Commission is preparing proposals tied to tokenization, and the London Stock Exchange Group just launched a blockchain platform for private funds and completed its first deal. Moreover, Dubai has approved a tokenized money-market fund as part of its own RWA drive. Service providers like Binance and Franklin Templeton also partnered on a tokenization push.

By contrast, Beijing’s stance looks more guarded even as officials weigh yuan-backed stablecoins for global use and senior former central bankers question the need for broader stablecoin adoption.

While China’s RWA stance joins its cautious crypto posture, the real-world asset sector is on the uptrend. According to The Block’s data, RWA products hold over $13 billion. Predictions from major financial institutions like Standard Chartered and Citi say the sector could skyrocket to $30 trillion by 2030.