The Chinese securities regulator has told certain brokerage houses to suspend their real assets (Rwa) Tokenization companies in Hong Kong, Reuters reported on Monday.
According to the report, at least two brokerage houses were invited not to lead the RWA company to offshore, citing sources familiar with the problem.
Directives aim to strengthen risks management among companies wishing to take advantage of the proliferation of digital assets in the Hong Kong Special Administrative Region.
A number of Chinese companies, including brokerage houses, have launched Rwas in Hong Kong in recent months.
The move of the Chinese securities regulatory commission (CSRC) suggests a concern in Beijing concerning Hong Kong’s progress towards the organization of a booming market of digital assets.
China prohibited the exploitation and trade in cryptocurrencies in 2021 by concern for the potential destabilization of its financial system.
Hong Kong has its own financial system, separated from the Chinese continent as part of the “One Country, Two Systems” frame.
