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Cover Story: China Carves Out a Narrow Path for Offshore Asset Tokenization

By Liu Ran, Ding Feng, Quan Yue, Wang Xiaoqing and Han Wei
2026年02月23日 06:20
A new framework separates real-world-asset tokenization from crypto trading, channeling offshore deals into China’s existing debt and equity rules

China is moving to end a regulatory gray zone for the tokenization of real-world assets (RWA), drawing a clear line between a domestic ban and a tightly controlled route for offshore fundraising.

On Feb. 6, the People’s Bank of China and seven other agencies issued a joint notice — known in the market as “Document No. 42” — reaffirming that virtual currency related business remains an illegal financial activity on the Chinese mainland. 

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