Key Highlights CSRC urges brokers to suspend tokenization of real-world assets Tokenized assets in Hong Kong surged dramatically in the past year Authorities aim to ensure proper preparation before market growth CSRC Calls on Hong Kong Brokers to Pause Tokenization The China Securities Regulatory Commission (CSRC) has asked several local brokers to suspend activities related to the tokenization of real-world assets (RWAs) in Hong Kong, Reuters reported , citing sources familiar with the matter. According to the sources, the recommendations were informal and voiced over the past few weeks. One source noted that the move is intended to mitigate risks associated with this new business model and ensure companies’ statements are accurate and legitimate before scaling operations. This pause also gives regulators time to assess compliance measures and potential market impacts, protecting both investors and the broader financial system. Hong Kong Crypto Market Faces Growing Oversight The news comes amid rapid growth in Hong Kong’s crypto market, where authorities have taken steps toward creating a digital financial hub. Recent measures include a licensing regime for crypto exchanges and pledges to support blockchain innovation. Analysts say the CSRC’s intervention reflects concerns about market volatility, fraud risks, and investor protection in the fast-expanding tokenized asset sector. Tokenized Assets on the Rise Earlier reports revealed that Seazen Group Ltd, one of China’s largest developers, plans to issue tokenized private debt by the end of 2025. In addition, a June 2025 CoinGecko report found that treasury tokenization surged by 545% to $5.6 billion, while stablecoins reached nearly $225 billion in tokenized volume. The CSRC’s move signals that regulators are actively monitoring the tokenization boom, aiming to balance innovation with investor protection as Hong Kong strengthens its role as a crypto-friendly financial center. With tokenized assets gaining momentum globally, the pause also allows firms to align with regulatory standards before launching large-scale offerings.
