The People's Bank of China and eight other departments have stated that activities involving the tokenization of real-world assets within China should be prohibited.
PANews reported on February 6th that, according to Jinshi News, eight departments, including the People's Bank of China, issued a notice on further preventing and handling risks related to virtual currencies. The notice states that real-world asset tokenization refers to the activity of using encryption technology and distributed ledger or similar technologies to convert the ownership and income rights of assets into tokens or other rights and bond certificates with token characteristics, and then issuing and trading them. Conducting real-world asset tokenization activities within China, as well as providing related intermediary and information technology services, which are suspected of illegal token issuance, unauthorized public offering of securities, illegal operation of securities and futures businesses, illegal fundraising, and other illegal financial activities, should be prohibited; exceptions are made for related business activities conducted based on specific financial infrastructure with the approval of the competent authorities in accordance with laws and regulations. Foreign entities and individuals are prohibited from illegally providing real-world asset tokenization-related services to domestic entities in any form.
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