As global financial markets accelerate the move toward blockchain-based assets, China has hit the brakes. The China Securities Regulatory Commission (CSRC) first called on several major brokerages to suspend their RWA tokenization operations in Hong Kong. Simultaneously, online brokerages like Futu and Tiger.com suddenly tightened account opening requirements for Chinese users, highlighting the cautious approach of Chinese authorities to crypto regulation, a stark contrast to the international pace.
China Securities Regulatory Commission orders suspension of Hong Kong RWA
Reuters reports that the China Securities Regulatory Commission (CSRC) recently recommended that some major Chinese securities firms suspend their physical asset tokenization operations in Hong Kong, citing "risk management" as a reason. At least two firms have recently received notice, but the duration and scope of the suspension remain unclear.
In recent years, Hong Kong has actively promoted policies related to the tokenization of RMB (RMB) stablecoins, even planning a stablecoin issuer system, in an attempt to establish itself as an Asian crypto financial hub. In contrast, while Beijing authorities are discussing the issuance of a RMB stablecoin , their approach remains conservative.
In addition to RWAs, stablecoin-related research has also become a target of regulation. As early as August, Beijing ordered several large brokerage firms to stop publishing research reports supporting stablecoins in an effort to cool the retail market enthusiasm that had been intensified by the new Hong Kong regulations .
Regulatory Concern: Brokerage Firms Close Account Opening Channels for Chinese Residents
At the same time, the channels for mainland residents to open accounts at overseas brokerage firms seem to have been blocked.
China Business News reported that online brokerages such as Futu and Tiger Securities recently suddenly adjusted their rules. Residents of mainland China are no longer able to register accounts using "documents proving overseas work or life" such as work visas, residence permits, or tax receipts.
In the future, if Chinese residents want to use these platforms, they must hold a Chinese ID card and an overseas permanent residence certificate (PR), which will undoubtedly increase the difficulty for Chinese retail investors to participate in overseas markets.
Global boom: The RWA market is accelerating
In contrast to China's cautious approach, the United States and the European Union are actively promoting asset tokenization. The former includes Nasdaq's application to the SEC for tokenized stock trading and BlackRock's exploration of ETF tokenization. The latter is accelerating the development of a digital euro, considering issuing it on Ethereum or Solana.
In just five years, the tokenization market has grown from an $85 million experiment to a $25 billion market, a 245-fold increase between 2020 and 2025.
Chainlink, UBS, and DigiFT Join Forces in Hong Kong to Pilot Automated Tokenized Funds
The market is still running wild: should supervision be cautious or open?
Although China has suspended some RWA tokenization businesses and tightened the possibility for retail investors to participate in overseas markets through brokerages, it cannot be ignored that the trend of global asset chain is still accelerating.
Driven by international financial institutions and regulatory frameworks, RWAs and stablecoins are becoming the most influential crypto application scenarios in recent years. For China, finding a balance between manageable risks and innovative breakthroughs will be a key issue in the coming years.
Robinhood CEO Vlad Tenev discusses the next five years and stock tokenization .
The article China's crypto regulation tightens: Hong Kong's RWA tokenization hits the brakes, and Chinese users' brokerage account openings are blocked originally appeared on ABMedia ABMedia .
