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CSRC Directs Brokers to Pause Real World Asset Tokenisation Activity in Hong Kong

CSRC Directs Brokers to Pause Real-World Asset Tokenisation Activity in Hong Kong

Beijing’s cautious stance halts tokenisation plans, while Hong Kong continues to court global crypto firms.

Written by Rahul Dhingra, Edited by David Delima | Updated: 23 September 2025 18:33 IST

CSRC Directs Brokers to Pause Real-World Asset Tokenisation Activity in Hong Kong

Photo Credit: Unsplash/Nic Low

Regulators in China flag tokenisation risks as Hong Kong ramps up digital-asset initiatives.

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Highlights

Regulators raise concerns over tokenised assets and market risks
Hong Kong pushes ahead with stablecoin licensing regime
Analysts see pause as cooling-off, not reversal

The China Securities Regulatory Commission (CSRC) has instructed broker firms to halt their real-world asset (RWA) tokenisation activities in Hong Kong, according to a Reuters report. China is showing signs of caution with this move, amidst ongoing efforts by firms to make the special administrative region (SAR) a global digital-asset hub. The CSRC reportedly guided at least two leading brokerages to halt offshore tokenisation work. This step reflects concerns of regulators about risk management. On the other hand, Hong Kong continues to introduce initiatives such as stablecoin licensing and a comprehensive virtual asset roadmap.

China Remains Cautious as Hong Kong Expands Digital-Asset Ambitions

Traders who support tokenisation believe that it is a step in the right direction to achieve low volatility and lay a stronger foundation for digital finance, but regulators are still concerned about how such assets will interact with capital markets. In a recent press release, the Shanghai Stock Exchange (SSE) said that the CSRC has always prioritised transparency and stability, which is a reflection of Beijing's cautious approach since its nationwide ban on crypto trading and mining in 2021.

On the contrary, Hong Kong has been actively positioning itself as a digital asset hub. A new licensing framework for fiat-based stablecoins was introduced by the Securities and Futures Commission (SFC).

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Issuers are required to obtain mandatory approval from the Hong Kong Monetary Authority (HKMA). Over 77 firms have already expressed their interest in participating, highlighting the region's determination to lure in foreign businesses.

Despite the CSRC's caution, observers view the current restrictions as a brief cooling-off period rather than a reversal of interest. Clearpool Co-founder, Jakob Kronbichler, believes that regulators seem to be adopting a “measured approach” to ensure tokenised products incorporate safety with capital markets.

Even though longer-term alignment across jurisdictions could improve clarity, Giorgia Pellizzari of Hex Trust conveyed that the key risks for firms involved are delayed product launches and increased compliance obligations.

Several Chinese firms have already ventured into tokenisation projects in Hong Kong. China Merchant Bank International facilitated the issuance of a 500 million yuan digital bond for Shenzhen Futian Investment, while GF Securities introduced yield-bearing “GF tokens”. Seazen Group also launched an institute in the region to explore tokenisation. However, uncertainty around cross-border operations could affect short-term capital flows.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: China, Hong Kong, Tokenisation, RWA, Cryptocurrency

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More