China’s top financial associations have issued a renewed warning against activities related to virtual currencies and Real-World Asset (RWA) tokenization, emphasizing heightened risks in the evolving digital asset landscape. As interest in tokenized assets and cryptocurrencies surges globally, Chinese regulators are reinforcing strict guidelines to protect investors and maintain financial stability. The latest advisory outlines growing concerns over illegal fundraising, speculative trading, and the misuse of blockchain technology for unregulated financial operations.
According to the joint statement, virtual currency trading, investment promotions, and token issuance remain prohibited activities within China. Authorities warn that many platforms offering cryptocurrency services operate outside regulatory oversight, exposing users to fraud, asset loss, and cybersecurity threats. The associations highlighted that virtual currency prices are driven largely by speculation, making them highly volatile and unsuitable for public participation.
The advisory also addresses the rising popularity of RWA tokenization, a new trend in the crypto sector where real-world assets—such as real estate, commodities, or financial products—are converted into blockchain-based tokens. While global markets see RWA tokenization as an emerging opportunity, Chinese regulators caution that such activities can easily blur lines between legitimate digital innovation and illegal financial products. Many RWA token schemes, they warn, may disguise unlawful fundraising or promise unrealistic investment returns, posing significant risks to consumers.
The financial associations urge institutions and the general public to remain vigilant, avoid participating in virtual currency transactions, and report suspicious activities. They also remind financial companies and payment institutions that offering services supporting crypto transactions is strictly prohibited. The statement reinforces China’s long-standing position on restricting cryptocurrency usage to prevent systemic financial risks and ensure regulatory clarity.
Despite these strict measures, global interest in blockchain technology continues to grow. Analysts note that China’s focus remains on promoting regulated digital innovation, particularly around its Central Bank Digital Currency (CBDC), the digital yuan. The government encourages the adoption of blockchain in areas such as supply chains, data security, and industrial applications—but firmly separates these innovations from speculative crypto-related activities.
As the crypto landscape evolves in 2025, China’s renewed warning underscores its commitment to maintaining a tightly controlled financial environment. For investors and crypto enthusiasts, this announcement serves as a reminder of the significant regulatory differences between global markets and China’s approach to digital assets. Understanding these distinctions is essential for navigating the risks and opportunities associated with virtual currencies and RWA tokenization.
