China tightens crypto crackdown with onshore RWA tokenisation ban

Chinese authorities have intensified their crackdown on cryptocurrencies by banning onshore tokenisation of real world assets (RWA) and related services. The notice, issued by eight government agencies led by the People's Bank of China, prohibits domestic entities from engaging in RWA tokenisation without approval. It also imposes strict supervision on offshore activities linked to onshore rights. The regulations aim to enhance compliance, risk controls, and oversight of virtual currencies, including a ban on yuan-pegged offshore stablecoins without authorization. This revision updates guidance from 2021 to address emerging risks in the crypto space.