Eight Departments Including the Central Bank: Real-World Asset Tokenization Activities Within China Should Be Prohibited

Odaily News According to a notice issued by eight departments including the People's Bank of China regarding further preventing and addressing risks related to virtual currencies and other areas, it was mentioned that real-world asset tokenization refers to activities that utilize encryption technology, distributed ledgers, or similar technologies to convert ownership rights, income rights, and other rights of assets into tokens or other equity or debt instruments with token-like characteristics, followed by their issuance and trading. Conducting real-world asset tokenization activities within China, as well as providing related intermediary or information technology services, are suspected of constituting illegal financial activities such as unauthorized issuance of token securities, unauthorized public offering of securities, illegal operation of securities and futures businesses, and illegal fundraising, and should be prohibited; except for related business activities carried out through specific financial infrastructure with the lawful and regulatory approval of the competent business authorities. Overseas entities and individuals must not provide real-world asset tokenization-related services to domestic entities in any illegal form.