The People's Bank of China and seven other departments: Activities involving the tokenization of real-world assets within the territory should be prohibited

Odaily Planet Daily News: The People’s Bank of China and seven other departments have issued a notice on further preventing and addressing risks related to virtual currencies and other activities. It mentions that the tokenization of real-world assets refers to the use of cryptographic technology and distributed ledger or similar technologies to convert ownership rights, income rights, and other interests of assets into tokens (coins) or other rights and bond certificates with token (coin) characteristics, and to carry out issuance and trading activities. Conducting real-world asset tokenization activities within the country, as well as providing related intermediary, information technology services, etc., suspected of illegal issuance of token tickets, unauthorized public issuance of securities, illegal operation of securities and futures businesses, illegal fundraising, and other illegal financial activities, should be prohibited; except for related business activities carried out with the approval of the competent business authorities in accordance with laws and regulations, relying on specific financial infrastructure. Overseas entities and individuals are not allowed to illegally provide services related to real-world asset tokenization to domestic entities in any form.