China’s ‘necessary’ asset-tokenisation ban targets scams and capital flight, analysts say

South China Morning PostEN 1 min read 100% complete by Ji Siqi,Eunice XuFebruary 9, 2026 at 01:30 PM

AI Summary

short article 1 min

China has banned the onshore tokenization of real-world assets (RWAs) and is increasing scrutiny of related offshore activities. The ban, announced by the People's Bank of China and other agencies, aims to prevent financial fraud and control capital outflows. Analysts suggest that many RWA investments in mainland China are essentially scams, and the ban is necessary to curb these activities. The regulations prohibit domestic entities and their controlled offshore entities from issuing virtual currencies overseas without approval. Furthermore, no entities, including foreign ones, can issue yuan-pegged offshore stablecoins without authorization. The move preserves space for regulated innovation in markets like Hong Kong.

Key Entities & Roles

Key Player Opposition Context

United States dollar 30% Shanghai Jiao Tong University 40% Hong Kong 60% Liu Xiaochun 60% People's Bank of China 70% China ×490%

Keywords

asset tokenization 100% real-world assets 90% china 80% financial fraud 70% capital flight 70% regulation 60% digital token 50% stablecoins 50% cryptocurrencies 40%