On February 6, 2026, the People’s Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and eight other departments jointly issued the “Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies” (Yinfa [2026] No. 42, hereinafter referred to as the “Notice”). On the same day, the China Securities Regulatory Commission (CSRC) issued the “Regulatory Guidelines on the Overseas Issuance of Asset-Backed Securities Tokens for Domestic Assets” (hereinafter referred to as the “Guidelines”). Subsequently, relevant officials from the People’s Bank of China and the CSRC answered reporters’ questions on issues related to the “Notice,” further clarifying policy guidance and implementation requirements.
All along, domestic policy towards blockchain and cryptocurrency activities with financial attributes has been one of high pressure and comprehensive prohibition. In this context, any new policies that announce new content are basically positive, because it can’t get any worse.
What new content is there in the February 6th notice, guidelines, and Q&A?
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RMB stablecoins cannot be issued. Previous attempts at offshore RMB stablecoins are confirmed to be dead. This decision is in line with our previous understanding that as a highly controlled currency, the high-level authorities believe that the uncertainties outweigh the benefits of attempting to create an uncontrolled stablecoin.
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Real-world asset tokenization cannot be done domestically. Real-world asset tokenization, commonly known as RWA, was already not allowed domestically. Previously, everyone was skirting the rules in Hong Kong, operating in a gray area. Now, the high-level authorities believe it can be done, but overseas.
The CSRC’s Announcement No. 1 of 2026 provides more detailed guidance on how to do it specifically. The CSRC’s Announcement No. 1 of 2025 is the “Opinions on the Application of Law and Regulations on Securities and Futures No. 19 – Opinions on the Application of Articles 13 and 14 of the ‘Measures for the Administration of Takeovers of Listed Companies’.” It can be seen that the regulation of crypto RWA is basically on par with that of listed companies.
- Real-world asset tokenization should be done well overseas. No country can refuse money. However, as a responsible major country, even RWA issued overseas must be good. Domestic assets with problems cannot be used, and issuers with problems cannot be used. With a responsible attitude towards the people of the world, we only issue RWA of high-quality domestic assets, and have the regulatory endorsement of the China Securities Regulatory Commission.
Because the issuer shall file with the China Securities Regulatory Commission and submit relevant materials such as filing reports and a complete set of overseas issuance materials as required, fully explaining the information of the domestic filing entity, basic asset information, token issuance plan, and other information.
The CSRC previously managed the issuance, listing, trading, custody, and settlement of stocks, bonds, funds, futures, and derivatives markets, as well as the business activities of related operating institutions. Now that it is managing RWA, it inevitably means that this is no longer an ordinary business that any player can participate in. The first compliant overseas asset tokenization deal will definitely belong to a Big player. However, if real-world asset tokenization has lower compliance costs and raises more funds than traditional asset securitization, then our crypto community will definitely make an indelible contribution to China’s economic development.
Anyway, it all looks good.
China’s New Crypto Policy: Implications for RWA Tokenization and Market Opportunities
On February 6, 2026, China’s regulatory landscape for cryptocurrency underwent a subtle yet significant transformation with the issuance of two key documents: the “Notice on Further Preventing and Disposing of Risks Related to Virtual Currencies” and the “Regulatory Guidelines on the Overseas Issuance of Asset-Backed Securities Tokens for Domestic Assets.” While maintaining China’s historically restrictive approach to domestic cryptocurrency activities, these policies introduce a carefully calibrated framework for international participation through real-world asset (RWA) tokenization, presenting both challenges and opportunities for the global crypto market.
Market Impact Analysis
The most consequential aspect of this policy shift is China’s explicit endorsement of overseas RWA tokenization of domestic assets under CSRC supervision. This represents a strategic recalibration rather than a liberalization of China’s crypto stance. By prohibiting domestic RWA tokenization while permitting it overseas, China has effectively created a controlled valve through which international investors can gain exposure to Chinese assets without compromising domestic financial stability.
This development positions China as a potential heavyweight in the global RWA tokenization market, which has been gaining momentum as a bridge between traditional finance and digital assets. The CSRC’s involvement suggests a level of regulatory sophistication that could attract institutional capital previously hesitant to engage with crypto due to regulatory uncertainty.
Token Price Implications
The policy bifurcation creates divergent impacts across different crypto sectors:
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RWA-focused tokens and platforms: The most immediate beneficiaries are likely to be projects with infrastructure for compliant cross-border RWA tokenization. Platforms capable of facilitating SEC/CSRC-compliant offerings and providing transparent audit trails for tokenized Chinese assets could experience significant capital inflows. Projects like Maple Finance, Goldfinch, or Ondo Finance, which focus on RWA, may see increased interest as the market recognizes China’s potential contribution to this space.
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Stablecoins: The prohibition of RMB stablecoins removes a potential competitive threat to China’s monetary sovereignty. While this primarily affects RMB-pegged stablecoins (which have had limited market presence anyway), it reinforces the dominance of USD-pegged stablecoins like USDC and USDT in the global market.
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Chinese crypto exchanges: Companies like Huobi, OKX, and Binance will maintain their focus on overseas markets, with this policy reinforcing the status quo rather than creating new domestic opportunities. Their growth will continue to be tied to international rather than Chinese retail markets.
Strategic Opportunities
For sophisticated investors, China’s RWA tokenization framework presents several compelling opportunities:
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First-mover advantage in cross-border RWA: The policy explicitly states that the first compliant overseas RWA issuance “will definitely belong to a Big player,” creating a land-grab opportunity for well-capitalized entities with established relationships in both Chinese traditional finance and global crypto markets.
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Innovation in regulatory technology: The requirements for CSRC filing and compliance create demand for regulatory tech solutions that can handle cross-border reporting, verification of asset quality, and regulatory adherence. Projects developing such infrastructure may find significant market traction.
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Access to high-yielding Chinese assets: International investors have long sought exposure to Chinese assets but faced barriers related to capital controls and market access. Tokenization could provide a more liquid, transparent, and accessible channel to high-quality Chinese real estate, infrastructure, and corporate debt.
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Arbitrage opportunities: Discrepancies between traditional Chinese asset valuations and their tokenized counterparts could create short-term arbitrage opportunities for sophisticated market participants with cross-border capabilities.
Risk Considerations
Despite the apparent opportunities, investors must carefully navigate several significant risks:
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Regulatory implementation uncertainty: While the framework is established, implementation details remain opaque. The CSRC’s definition of “high-quality domestic assets” and “issuers with problems” is subjective and could evolve, creating potential regulatory risk for early market participants.
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Geopolitical tensions: China’s approach to crypto remains distinct from Western jurisdictions. Heightened geopolitical tensions could impact cross-border crypto activities, particularly those involving Chinese assets.
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Concentration risk: The emphasis on “Big players” suggests market concentration, potentially limiting diversification opportunities for smaller investors and creating a winner-takes-all dynamic.
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Capital control enforcement: China maintains strict capital controls. The ability to freely move funds into and out of these tokenized assets remains uncertain, potentially limiting liquidity and market depth.
Conclusion: A Measured Approach to China’s Crypto Integration
China’s new cryptocurrency policy represents neither full embrace nor outright rejection of crypto but rather a strategic middle path. By prohibiting domestic crypto activities while creating a controlled framework for international RWA tokenization, China has found a way to participate in the global crypto economy without compromising its financial sovereignty.
For experienced crypto investors, the key takeaway is that China’s entry into the RWA tokenization market, albeit through carefully regulated channels, represents a significant development that could substantially increase the total addressable market for tokenized real assets. The policy shift suggests that RWA tokenization is moving from the fringes of crypto to the mainstream of institutional adoption.
Investors should focus on identifying projects with the regulatory infrastructure, cross-border capabilities, and institutional relationships necessary to capitalize on this emerging opportunity, while maintaining a cautious approach given the inherent geopolitical and regulatory risks.