China bans digital financial securities for the first time: The largest crackdown on cryptocurrencies from 7 agencies since 2021
Seven major associations in the Chinese financial industry issued a joint risk warning, marking the most comprehensive crackdown on cryptocurrencies since the ban in 2021 that forced all cryptocurrency exchanges to exit the country.
The associations include banking, securities, funds, futures, payment settlement, listed companies, and online financing. They stated that all business activities related to cryptocurrencies, including stablecoins, airdrops, mining, and specifically the conversion of real assets to tokens (RWA), are illegal in China.
Real asset tokens fall under regulatory scrutiny
The statement, issued on December 5, explicitly clarified that Chinese financial regulators "have not approved any activities to convert real assets into tokens," making it the first official ban on RWA in the country.#Ripple
