China Leaves Room for RWA Projects… Stablecoins Effectively Banned

As Chinese regulators reaffirmed their crackdown stance on virtual assets (cryptocurrencies), the possibility of limited permissibility has been raised only for real-world asset tokenization (RWA) projects. By contrast, analysis suggests stablecoins will effectively be excluded from approval.

On the 9th (local time), DL News reported that, after analyzing regulatory guidelines recently released by the Chinese government related to virtual assets and asset tokenization, the likelihood of trading yuan-pegged stablecoins in China or granting licenses for them is very low. Analysts said, “It is unlikely that domestic Chinese tech firms will obtain stablecoin licenses,” adding that “this measure does not ease existing regulations but rather further strengthens enforcement.”

Earlier, eight state agencies—including the People’s Bank of China and the China Securities Regulatory Commission—reaffirmed a policy of全面 banning virtual-asset trading, issuance, and brokerage activities, and designated fiat-pegged stablecoins as a category subject to special oversight. In particular, issuing yuan-based stablecoins overseas without government approval was also included among prohibited acts.

However, with respect to real-world asset tokenization (RWA), the guidelines included an exception clause, leaving room for interpretation. The guidelines mention the possibility of tokenization projects premised on “government approval,” prompting speculation that the Chinese government could allow a small number of RWA firms to operate within Hong Kong’s regulatory sandbox.

One source who requested anonymity said, “This is the first time Chinese regulators have directly mentioned RWA in an official document,” adding, “The guidelines are highly detailed and set out a clear direction with pilot programs or sandbox projects in mind.” The source described it as “a limited but positive signal, different from a message of across-the-board prohibition.”

Market participants are focusing on the possibility that, while tough regulations on stablecoins and virtual assets overall will remain in mainland China, tokenization experiments centered on RWA could be pursued on a limited basis with Hong Kong as a hub. Some also argue that this dual-track approach could serve as a benchmark for gauging the future direction of China’s digital-asset policy.