China’s securities regulator has asked some brokers to put their real assets on pause (RWA) Tokenization companies in Hong Kong, reported Reuters on Monday.
At least two brokers have been asked not to implement any RWA business offshore, according to the report, with reference to sources familiar with the case.
The guide aims to strengthen risk management among companies that want to pay on the spread of digital assets in the special administrative region of Hong Kong.
A number of Chinese companies, including brokers, have launched RWAs in Hong Kong for the past few months.
The move from China’s securities control commission (CSRC) suggests concern for Beijing about Hong Kong’s progress towards hosting a thriving market for digitally asset.
China banned cryptocurrency mining and trade in 2021 of concern for potential destabilization of its financial system.
Hong Kong has its own financial system, separated from the Chinese mainland as part of the “One Country, Two Systems” framework.
