China Focuses on Regulation in Hong Kong
The CSRC’s recommendation reflects a careful approach to regulation as interest in blockchain-based asset tokenization grows, especially in Hong Kong. While this pause does not mean a total ban, it creates uncertainty about when major financial institutions will issue RWAs tokens in the future.
Notably, the CSRC has reached out to two major brokerages, although their names were not shared publicly. It remains unclear whether the regulator will extend this guidance to more firms or if this is just a temporary step as part of larger regulatory reviews.
Despite the regulations in place, experts believe that RWA tokenization has a bright future in Hong Kong. The city is actively rolling out policies to attract blockchain companies, while strengthening its position as a leading digital asset hub in Asia.
Hong Kong Innovative Push
It is worth noting that Hong Kong has rolled out its latest digital asset policy blueprint. This placed a strong emphasis on stablecoin oversight and the tokenization of real-world assets.
As reported by BitcoinLinux, the framework, dubbed “LEAP,” focuses on four pillars: Legal clarity, Ecosystem development, Application of real-world use cases, and Promotion of talent.
The government also revealed plans to institutionalize tokenized government bond issuances and encourage the development of tokenized ETFs. Hong Kong’s vision stretches beyond traditional finance.
The policy advocates expanding tokenization into areas such as renewable energy and precious metals like gold.
China’s Growing Interest in Stablecoins and RWAs
There is no doubt that the Chinese government officials are now paying more attention to stablecoins and real-world assets. Some government officials have begun to explore how these tools can be utilized to support financial innovation, enhance payment systems, and foster the digital economy.
This suggests that while China remains cautious about cryptocurrencies, the country is not completely closing the door on blockchain and digital assets.
Recall that recently, several social media posts claimed that China had placed a new ban on crypto trading and mining. However, experts and trusted sources came forward to confirm that these claims are false.
The post China Pushes to Suspend RWA Tokenization Initiatives appeared first on BitcoinLinux.com.
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Author: coinmaker