The Chinese authorities issued document No. 42 on February 6, replacing the cryptocurrency ban notice from 2021. According to NS3, the document continues to strictly prohibit cryptocurrencies but introduces formal regulation for the tokenization of real-world assets (RWA). The new framework allows RWA activities on approved financial infrastructure and establishes a filing system for the tokenization of assets outside of China under regulatory oversight. This marks a shift for China from a complete ban to a controlled and compliant regulatory environment for asset tokenization.