Seven Chinese Financial Associations Label RWA Tokenization Illegal Under Existing Securities Rules

Seven leading Chinese financial industry associations have jointly classified real-world asset tokenization as an illegal financial activity under current securities and criminal laws. The notice defines RWA as token-based financing and trading, links it to risks such as fictitious assets and speculation, and places it alongside stablecoins and crypto mining as major forms of unlawful virtual currency activity. It further establishes joint liability across the Web3 service stack, warning that domestic staff, service providers, and promoters assisting RWA projects targeting Chinese users may face legal consequences.