The Hainan Local Financial Supervision Bureau of China Issues Risk Warning on Illegal RWA Transactions

BlockBeats News, March 24th, the local Financial Supervision Bureau of Hainan Province, China, issued a risk reminder regarding illegal RWA transactions on March 19th. Recently, relevant entities have been promoting themselves under the names "Hainan International Data Asset Exchange," "Hainan Data Exchange," "Hainan Sea Exchange," etc., claiming to be able to legally conduct RWA Real World Asset, RDA Real Data Asset, and other businesses. Market entities, without approval, conducted business in violation of regulations in the name of a trading venue, suspected of illegal financial activities, endangering public property security.

Currently, the establishment of "Hainan International Data Asset Exchange" has not been approved within the jurisdiction of Hainan Province. To establish a trading venue within the province, approval from the provincial government is required. Without approval from the authorized department, market entities shall not use terms such as "exchange," "trading center" in their registered names and shall not engage in trading venue-related business activities.

In addition, the People's Bank of China, the China Securities Regulatory Commission, and eight other departments jointly issued the "Notice on Further Preventing and Dealing with Risks Related to Virtual Currency," clearly stating that the regulation of RWA tokenization will follow the principle of "strict prohibition domestically and strict regulation overseas," emphasizing that engaging in RWA tokenization activities within the country and providing related intermediary, information technology services, etc., suspected of illegal token ticket sales, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited.